Masters Degrees (Centre for Development Support)

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Open Access
Informal economy support: the case of SMMEs in the Mossel Bay Municipality
(University of the Free State, 2023) De Boer, Lawrence Julius; Van Rooyen, Deidré
The informal economy is critical in enabling economic inclusion, especially given the challenges of structural unemployment in the South African economy. In these settings, the informal economy is potentially a catalyst to unlock, drive, and exploit opportunities for the economically marginalised due to the relatively low barriers to entry, especially for necessity-driven entrepreneurship. With lagging early entrepreneurial activity and high discontinuance rates not contributing to the growth of informal enterprises into mature and sustainable enterprises, the study focuses on the appropriateness of business support measures extended to these informal enterprises to tackle and overcome the challenges they face. The study gathers insights from informal economy entrepreneurs and stakeholders in the business support ecosystem on the key barriers and constraints they face in their entrepreneurial journey and perspectives on their support needs. The study was executed through semi-structured interviews with stakeholders and informal entrepreneurs. The key stakeholders involved in business support extension were approached, which included the primary government support agency and other roleplayers, such as the LED department of a local municipality and representatives of local informal entrepreneurial associations. The study revealed that as much as informal enterprises are closely aligned with the formal economy, their support needs differ from those offered to the formal economy. Furthermore, it found that the departure point for support agencies, closely linked to the government's policy position, is the formalisation of informal enterprises. Consequently, this leads to premature formalisation, impacting the cost and burden of compliance, for which most informal enterprises need resources. The study recommends that broad stakeholders and support agencies in the support ecosystem should pay due cognisance to the support needs of informal enterprises and their owners from a financial and non-financial support perspective. The study emphasises that adopting a differentiated approach is necessary and that a customised support model is needed to extend more effective business support in the informal economy. A more effective business support model will be achieved if business support stakeholders and agencies understand the support needs of informal enterprises and, as a direct consequence, leverage financial and non-financial support with partnerships within the public and private sectors. This will ultimately contribute to improving business discontinuance rates, more sustainable businesses, and positioning informal enterprises to exploit opportunities for growth within the local economies.
Open Access
The influence of an entrepreneurial mindset on the performance of small medium and micro enterprises (SMEs) in the informal sector
(University of the Free State, 2023) Mudzamiri, Ndana S.; Xaba, Refilwe
The important relationship between an entrepreneurial mindset and the performance of small, medium, and micro enterprises (SMEs) operating in the informal sector is examined in this dissertation. This study aims to determine the degree to which informal SMEs operate with an entrepreneurial mindset in addition to evaluating the effect of an entrepreneurial mindset on the overall performance of these businesses. SMEs are essential to supporting regional growth and the overall economy in the modern economic environment. However given the particular difficulties that informal SMEs encounter, it is important to take a close look at how an entrepreneurial attitude affects their operations. This dissertation attempts to offer insights into the characteristics of an entrepreneurial mindset and how these characteristics influence the operational and strategic decisions of informal SMEs through a thorough literature analysis and empirical research methodologies. The study aims to measure the effect of entrepreneurial thinking on key performance metrics, such as profitability, innovation, and sustainability, in the setting of informal SMEs by utilising both quantitative and qualitative analysis. It is expected that the research's conclusions will make significant contributions to both academic research and useful policies, providing suggestions for encouraging and maintaining an entrepreneurial attitude among informal sector SMEs. To lay the groundwork for future studies and policy interventions, this dissertation aims to close the current knowledge gap regarding the interplay between an entrepreneurial attitude and the performance of small and medium-sized enterprises (SMEs) in informal sector areas.
Open Access
Youth and social entrepreneurship: the case of Phuthaditjhaba, Free State
(University of the Free State, 2023) Mosia, Ngaka Martin; Van Rooyen, Deidre
As young people will determine the future of social entrepreneurship, gaining an in-depth understanding of their engagement is essential. The study aimed to explore the youths' awareness and insights of social entrepreneurship to be able to address Phuthaditjhaba's socio-economic difficulties. Through an adopted exploratory case study and purposive sampling, data was collected from 13 research participants, using a qualitative research method and thematic analysis was used to analyse data. The research discovered that the good relationship between young aspiring social entrepreneurs, young social entrepreneurs and relevant stakeholders in social entrepreneurship can unlock the potential of youth social entrepreneurship to address socio-economic challenges to enhance community development in Phuthaditjhaba, Free State. The study recommends that to enhance community development through social entrepreneurship, effective management strategies on organisational and community level should be formulated that inform a good practice to solve socio-economic challenges and maximise impact. The study closes the limited research gap by laying down and documenting youth social entrepreneurship understanding and experiences in addressing socio-economic challenges facing communities, especially in the South African context. Therefore, further study about young social entrepreneurs' relationship-building skills with stakeholders is required.
Open Access
Educational capabilities and aspirations of informal market women: the case of the "Stop 'N Shop" informal open market in Windhoek, Namibia
(University of the Free State, 2023) Ngunaihe, Paskaline Ngayozikue; Martinez Vargas, Carmen
Accounting for more than 60% of the world’s population, the informal economy is known to be where they earn their income and livelihoods (International Labour Organization (ILO), 2018). In Namibia and many parts of the world, the prevalence of the informal sector has been apparent enough to make it a worldwide phenomenon, regardless of the socio-economic development of the various countries. However, the majority has been recorded higher in developing countries. Employment in the informal sector is globally higher for men at 63% and 58% for women, but women are found to be involved in the most vulnerable types of work or from home-based spaces (ILO, forthcoming). In addition to that, women are said to represent about 70% of the global poor (Golla, Malhotra, Nanda, & Mehra, 2011). Moreover, it is evident across various literature that the empowerment of women market workers in the informal economy is a factor that influences growth in choices, improved livelihoods, and the advancement of gender equality. In relation to the attainment of the latter, education is an asset so crucial for women that it provides them with a range of positive options; this includes reduced, early childbearing and marriage, they are more involved in decision-making, more aware of their rights and they have greater access to better employment opportunities (United Nations Women, 2015). Per the Namibia Informal Economy Case Study Report (2016/17), nearly 70% of the own-account workers engaged in the informal sector are, most importantly, female (Ministry of Labour, Industrial Relations, and Employment Creation (MLIREC) and Social Security Commission (SSC), 2018). Thus, this study aims to explore and comprehensively investigate the impact of education, employment, and capacity-building initiatives within the informal sector, especially on women 18 – 44 years working in the informal markets through international literature, while examining the dynamics of gender inequality and education in the informal sector regarding their impact on access to opportunities (capabilities) and basic resources for this collective of women. Additionally, it explores educational pathways and aspirations of women in the informal sector operating from the Stop ‘N’ Shop informal market in Okuranyangava, Windhoek, in Namibia. The study utilized a Qualitative Hermeneutic Approach, which is inherently phenomenological in nature, used as a model to uncover from human experiences meaning and essence, deductive from the conceptual framework guided and framed through Sen’s (1999) capability approach. In line with the above methodology, this study will use appropriate data collection methods and semi-structured in-depth interviews with the market women 18 – 44 years to gain further insight into this phenomenon. The results found that Market women face several challenges that affect their gender equality to the extent that they are limited to a fast number of multi-faceted responsibilities as they navigate care for their children, extended families, husbands, siblings, and parents. The latter is in addition to women in the informal market experiencing uneven access to resources and income, which are dynamics that further confine them in accessing and attaining their basic resources, educational, aspirational needs, and capabilities due to these many causes. However, the most common is the lack of education and the financial resources to attain education to set up a sustainable livelihood for themselves and their families. It is imperative to note that the findings emphasize that the sacrifices of exploring market opportunities can be tremendous, such as migration from one area to another, especially from a rural area to a more urban and developed area, in this case to Windhoek, the capital City of Namibia in search of growing opportunities for their livelihood improvement, even facing circumstances of lack of safety, infrastructure, and service as they embark an opportunity-seeking journey that has educational aspirations at heart. Results and findings with the Non-Governmental Organizations and local government representatives that work with the “Stop ‘N Shop” market to get a better understanding of the opportunities available for market women, they reveal that the different organizations provide various initiatives for women in the informal economy. However, these initiatives seem to come at a fee. Thus it is safe to say that informal employment earnings for women market workers context limits them to divert their income to cover their education and educational desire increasing their chances of remaining in the cycle of poverty. The finding also establish that supporting women in informal markets with resources and training is an essential long-lasting relationship builder, especially of small livelihood sustaining and improving women’s businesses in the market. In addition, the educational institutions find it imperative that education and research goals can be explored through inclusive means such as mature entry and recognition of prior learning (RPL) in higher education and technical and vocational education and training (TVET), to establish the needed gender equality in education and community engagement to ensure the contribution of education is in line with the women’s educational aspirations and challenges they face as a market worker.
Open Access
Sustaining livelihoods in post-mine closure contexts: aphenomenological study of former-mineworkers at Tshikondeni Mine in Limpopo Province, South Africa
(University of the Free State, 2024) Dzimiri, Patrick; Marais, Lochner; Cloete, Jan
The phenomenon of mine closure is increasingly gaining credence as a research focus due to the economic, social, and environmental challenges communities experience in the postclosure environment. Resource depletion and social and political threats account for the closure of several mines globally. In South Africa, closure is attributed to most mines being too old and no new minerals are being discovered. The Tshikondeni coal mine in Limpopo faced closure due to mineral depletion. A gap that has been observed is that not much has been done regarding the impact of mine closure on the livelihoods of coal miners. This phenomenological study, therefore, examined how the former mineworkers at the Tshikondeni mine sustained their livelihoods after the closure of the mine in 2014. The main problem explored was how the former mineworkers acceded to the mine closure’s social and economic realities. A sustainable livelihoods framework was utilised to understand the lived experiences of mineworkers after the mine closure. Data was collected using in-depth interviews, and snowball sampling was adopted to identify the former mineworkers at Tshikondeni who experienced the mine closure. A thematic approach was adopted for data analysis to extrapolate critical themes and meanings from coded data from the recorded interviews with the former mineworkers.
Open Access
Social entrepreneurship fostering community development: the case of Mdukatshani NGO in the uThukela District, KwaZulu-Natal
(University of the Free State, 2023) Duma, Zithobile Peggy; van Rooyen, Deidre
Social entrepreneurship plays a key role and it makes a crucial contribution to community development; hence, it is likened to being an architect of community development (Malunga, Iwu and Mugobo, 2014). Social entrepreneurs create something out of nothing in the community development landscape, bringing hope to the hopeless. Through social entrepreneurial activities, local communities benefit in terms of employment, income growth, and the provision of services. By so doing, social entrepreneurship’s contribution to community development bridges the gaps created by ineffective, inefficient, and unsustainable developmental programmes provided by major institutions (Dees, 2001). Like many other developing economies, South Africa faces developmental challenges; inequality, poverty, and unemployment are the main problems (Stats SA, 2021). About 55.5% of the total population lives below the national poverty line, 45.3% of working-age adults are unemployed, and the Gini coefficient is 0.65 (among the highest in the world) (Stats SA, 2021). Various conclusions can be drawn from this situation, including the ineffectiveness of poverty alleviation policies and programmes, a slow and poor-performing economy, unemployment, and corruption. As a result, a heavy load rests upon the government's shoulders to take care of many people through grants. The high level of unemployment is the leading poverty driver among the youth (Statistics SA, 2021). To curb youth unemployment, the government has introduced programmes such as the Expanded Public Works Programme, the National Youth Services, and Vukuzakhe. In the second quarter of 2023, the unemployment rate reached 32.6% (Stats SA, 2022). This is slightly lower than the 32.9% in the first quarter of 2021. Youth unemployment also registered a decrease, from 62.10% in 2021 to 60.7% in the second quarter of 2023. However, the unemployment in South Africa is still at an unacceptable rate. In his State of the Nation address in 2020, the President of South Africa, Cyril Ramaphosa, admitted that South Africa’s socio-economic problems are deeply entrenched and cannot be overcome by the government alone. The President confirmed that social compacts have been forged to overcome the countries challenges. Government, civil society, communities, and faith-based organisations have joined hands to find solutions, such as creating job opportunities (Ramaphosa, 2020). Social enterprises are a significant part of the solution by attending to social problems and growing the economy and employment rate. It is evident from the above that the government’s commitment to solving the country’s developmental challenges is an never-ending endeavour. The President’s call for a social compact is confirmation of community development as an approach employed by the government to deal with development challenges. Community development provides a way for the government, the private sector, civil society, and communities to work together and mobilise resources for the upliftment and empowerment of communities in a sustainable manner (Rwigema, 2022).
Open Access
Informal economy in promoting local economic development: the case of Mangaung central business district
(University of the Free State, 2023) Modirapula, Tshalofelo David; Van Rooyen, Deidré
The number of people who are unemployed and living in poverty in South Africa has significantly increased, while inequality remains a pressing challenge. These challenges are exacerbated by the inability to create sustainable jobs in the formal economy. In contrast, the informal economy has been a sector where people have opened their businesses, and others have found employment. This study investigates how the informal economy can promote local economic development. In addition, the study aims to assess the approach of the Mangaung Metropolitan Municipality towards the informal economy and how this has impacted on the livelihoods of those making a living in this sector. The researcher employed a qualitative approach to understanding the phenomenon of the informal economy. Data was collected through semi-structured interviews, and the respondents in the study were purposefully selected. The selected sample for the study comprised 23 participants and included municipal and government officials, informal traders operating in the Central Business District of Mangaung, and those in the Batho location. The interviews with all respondents were audio taped, and a thematic analysis strategy was used to identify and organise themes and identify mistakes in the collected data. The study found that although the informal economy can contribute towards sustainable and inclusive LED in Mangaung, the sector's development needs to be supported. In addition, the information economy should be included in integrated development and budgeted for in the LED strategy. Furthermore, the approach of the Mangaung Metro needs to be more balanced and focused on the informal traders operating in the CBD and in the location. As a result, this has negatively impacted on the livelihoods of informal traders and highlighted separate development. The study recommends that the Municipality creates an environment that is conducive for informal businesses and that informal businesses operate as industrial clusters that can help create jobs and reduce poverty and inequality, in line with the goals of LED.
Open Access
The impact of the Nkangala region mine closure on the former mine employees and their dependents
(University of the Free State, 2023) Mathe, Siphiwe Lorraine Thato; Marais, J. G. L.
The mine closure represents a turning point in the lives of former miners and those who are dependent on them, having a significant impact on their socioeconomic well-being. In the context of South Africa's Mpumalanga in the Nkangala Region, this study explored the complex effects of mine closure on ex mine workers and their dependents. The study demonstrated that mine closure contributed to psychological discomfort, loss of benefits like housing, medical aid, and life insurance, dysfunctional families, as well as other related social problems, because it also impacted the livelihood of former miners and their dependents negatively. The study suggests social entrepreneurship as a form of intervention that will address the social ills and economic impacts, along with training in transferable skills for industries other than mining.
Open Access
The role of corporate social responsibility (CSR) on women's micro-enterprises: the case of Ezemvelo KZN wildlife
(University of the Free State, 2023) Sosibo, Phumlani Victor; Van Rooyen, Deidre
The positive support provided by Ezemvelo KZN Wildlife can potentially transform the entrepreneurial spirit, attitudes, and perceptions among women in rural communities of the KwaZulu-Natal Province. Previous research on women's micro-enterprises has highlighted the importance of empowering women, particularly those living in rural areas such as KwaZulu-Natal. This study specifically focuses on investigating the initiatives of women's micro-enterprises through the corporate social investment programme of Ezemvelo KZN Wildlife. The study was conducted in the Masters Primary Co-operative, using qualitative research methods. A sample of 13 participants involving government officials and co-operative members was selected using purposive sampling. Data was collected through semi-structured interviews and focus group discussions. Thematic analysis was employed to analyse the collected data. The primary objective of this research was to understand how corporate social responsibility contributes to women's micro-enterprise initiatives using Ezemvelo KZN Wildlife as a case study. By focusing on these initiatives, the study aims to shed light on the strategies and practices that lead to the successful and enduring operation of women's micro-enterprises with the organisation's support. Ezemvelo KZN Wildlife’s corporate social development programme has helped to sustain women's micro-enterprises by increasing income generation, business expansion, purchasing necessary equipment, and improving their production capacity, leading to higher revenue and profits. The women also received infrastructural assistance, access to a broader market base, and essential training and capacity building. The study demonstrated that women's micro-enterprises achieve sustainability through teamwork, commitment, and future focus. The study recommends that Ezemvelo KZN Wildlife adopt the Marxist feminist theory approach, the sustainable livelihood approach to corporate social responsibility, and offer continuous training in micro-enterprises to improve their corporate social responsibility programme further.
Open Access
Pandemic e-learning and the interruption of higher education’s social justice goals: narratives from the Central University of Technology (CUT) in the Free State (FS)
(University of the Free State, 2023) Mokoena, Lehlohonolo Gibson; Kwachou, Monique
South Africa remains one of the most unequal societies in the world. Higher education has been adopted as one of the key tools to dismantle inequalities and promote social justice in South Africa. The global Covid-19 pandemic saw universities move online to complete the academic year. The adoption of e-learning meant a new terrain for all students from different socio-economic backgrounds. Although e-learning has become an integral part of 21st-century education, the reality is that its adoption in South Africa is presented with challenges such as the lack of the internet and digital tools, particularly for students from marginalised groups. This begs the question of how the expectations of institutions higher of learning of social justice have been expanded or disrupted during the pandemic. Furthermore, has students’ human development been compromised or enhanced during the pandemic? This study aimed to conduct a narrative inquiry into the e-learning experiences of tourism and hospitality management students and staff of the Central University of Technology, Free State. The study also sought to investigate how (if at all) the sudden switch to e-learning has affected the role played by higher education as an instrument of social justice for students. The theoretical framework used in this study is the Capability Approach. This theoretical framework was used as the lens through which to look at the students’ individual experiences of e-learning. The framework allowed to assess students’ capabilities, agency, well-being, and conversion factors during the pandemic. Data in this study were collected through qualitative methods and a triangulation approach of narrative interviews with the students, semi-structured interviews with the HoDs, and document analysis. Pre-selected themes and sub-themes were constructed to analyse data and to reflect the Capability Approach. The study findings show that although students value education as a way to improve their standard of living, the lack of resources for e-learning pedagogy compromised valuable educational achievements. Much of the students’ agency was constrained by their learning environment. During the pandemic, as a result of the lack of access to lecturers and lack of e-learning training for academics, the capability for knowledge was somewhat constrained, translating to epistemic injustice. Overall, e-learning was only favourable to few students, thus exacerbating disparities. Soft skills that are critical for human development gained at the university in a social setting may have been lost. The study also found that the university features social justice policies that try to equalise and help students to achieve their academic freedom. Although the university recognised the e-learning challenges and showed agency in assisting students with data and devices, the expectation of playing the role of being an instrument of social justice for students was compromised by the structural inequalities that exist beyond a university setting. It is recommended that through funding, first-entry-level students should be equipped with digital devices as part of the enrolment to combat digital inequality. Lecturers should not only be trained in e-learning pedagogy, but also trained how to factor inclusivity into teaching practices. Blended learning should be an integral part of the teaching practices to prepare for unforeseen circumstances that compel students to learn away from a university.
Open Access
Social enterprises and sustainability in Gauteng, South Africa
(University of the Free State, 2023) Bungu, Johnson Bungu; Van Rooyen, Deidre
Social entrepreneurship has become essential in several developed and underdeveloped countries (Defourny and Nyssens, 2010). In 1980, social entrepreneur Bill Drayton founded the Ashoka Innovators for the Public organisation (Shapiro, 2010). Ashoka referred to a passionate entrepreneur who was tackling a social issue. The entrepreneur’s objective would be a social mission that is backed by entrepreneurial qualities of dynamism, innovation, and dedication. According to Shapiro (2010), the term has evolved and now has different meanings. Some of these include social activities with business attributes and businesses themselves. It is a business; however, it has a social objective, and any surplus income is invested (Roy et al., 2010). Social entrepreneurship creates value instead of capturing value (Santos, 2012). According to Littlewood (2015), the social mission is the most critical objective. Profits are the route to achieve this objective and are reinvested in the organisation and not given out to shareholders. It is an emerging field with no consensus on the definition (Austin et al., 2006). In Europe, the conversations and ideas of social entrepreneurship began in the 1990s, while in the United States, the Harvard Business School started an initiative on social entrepreneurship in 1993. There were, however, different understandings and no consensus on what social entrepreneurship was (Bennati and Radi, 2018). Various institutions were set up, with universities starting research and training programmes in this area. Other networks were set up, including the emergence of social enterprises in Europe, such as the EMES European Research Network and the Social Enterprise Knowledge Network for Latin American business schools. This further led to various European countries passing laws that promoted social entrepreneurship. The European approach to social entrepreneurship emphasised the collective, cooperative and associative forms. Social entrepreneurship is also attracting attention in Latin America and Eastern Asia (Defourny and Nyssens, 2010). Here, social networks are essential for understanding social entrepreneurship for three reasons: They drive the flow and quality of information and determine rewards and punishments. Trust emerges through social networks, which impact the cost of transactions. Social networks, therefore, influence the organisation’s performance and access to resources and help build legitimacy; social entrepreneurship results from pooling and exchanging resources by different organisations. Social entrepreneurs rely on wide and personal networks, unlike commercial businesses, which depend on professional networks (Trivedi and Stokols, 2011). When social entrepreneurs address social problems, this creates social value. High unemployment, poverty and inequality are experienced in South Africa. These have remained extremely high and are predicted to remain as economic growth prospects are bleak. Social entrepreneurship, among other solutions, may help to address this situation. However, social entrepreneurship has faced sustainability challenges, and it is essential to look at how some established social enterprises have sustained themselves. This may help develop the sector in the Gauteng as well as the rest of the country.
Open Access
Students’ perspectives on the contribution of community education and training colleges to local communities
(University of the Free State, 2023) Modise, Cynthia Nthabiseng; Kibona, Bertha Aliko
Although the White Paper on Post-School Education and Training and scholars describe the role of Community Education and Training Colleges (CETC1s), a gap still exists regarding how CETC¹s carry out their duties in society. The aim of this study was to address this gap by exploring the participants’ perspectives on how CETC¹s value their contribution to addressing the challenges and needs of local communities. The Capability Approach (CA) was employed as the analytical framework in this study to examine the societal impact of CETC¹s in South Africa. Data were collected from research participants through semi-structured interviews, and thematic analysis was used to analyse the qualitative data. The findings of the study indicate that students perceive CETC¹s as economic agents that facilitate their employability or engagement in self-employment. The CA highlights the importance of considering the resources provided to students and how their conversion factors influence their functionings in successful efforts to enhance CETC¹ education. The findings suggest that the role of CETC¹s is to provide students with opportunities for intellectual advancement and the ability to evaluate what is relevant to them. However, it is crucial to be mindful of CETC¹ education, particularly in light of the participants’ expressed valued capabilities and functionings, encompassing societal and economic values. Although CETC¹s enhance students’ skills, their valued capabilities are constrained by classroom size, financial limitations, and curricular concerns. Based on the empirical findings, the study argues that the Department of Higher Education and Training (DHET) should enhance the theoretical and practical understanding of CETC¹s’ role. This would require CETCs to introduce democratic educational concepts to strengthen student voices; expand CETC's curriculum to include sustainable livelihood strategies; work with technical and vocational colleges and universities to coordinate curricula and ensure quality; and rethink college policies to help students more effectively navigate the institutions systems. In addition, by resolving infrastructural issues, limited classrooms, low student funding, and a lack of alignment between CETC and local community requirements, these CETCs should be able to better recognise the societal function of CETC1s. Such initiatives might improve student welfare and societal welfare while promoting the economic advantages of CETC1s.
Open Access
The role of socio-economic development projects by renewable energy companies in the Dawid Kruiper Local Municipality, Upington, in the Northern Cape Province
(University of the Free State, 2022) Mbobo, Babalwa Constance; Marais, J. G. L.
This study examines the socio-economic and economic development undertaken by renewable energy projects under the REIPP programme in Upington, in the Dawid Kruiper Local Municipality (DKLM) in South Africa. The researcher analysed secondary data and applied a qualitative methodology. The semi-structured key informants' interviews and focus groups were used when collecting the data. The research participants, who were mostly community members, detailed their views and experiences of how the renewable energy sector affects their daily lives through the projects they have in their vicinity. This study revealed significant changes in renewable energy South African policies and strategies from the White Paper on Renewable Energy, promulgated in 2003, up to the REIPPP programme established in 2011. The REIPPP programme is a government-led procurement programme that aims to increase the share of renewable energy in the national grid by procuring energy from IPPs, especially now that the country is faced with energy insecurity challenges. The study continued in discussing participants' views about renewable energy projects. For decades it has been a known fact that renewable energy addresses the ever-growing demand for electricity while addressing climate change issues. In particular, both off-grid technologies and large-scale utility projects offer great potential for both rich and poor communities. Also, it contributes to economic development criteria, which includes local job creation, local ownership, social and economic development. However, community members raised concerns in relation to job creation, environmental impacts and socio-economic challenges. Some of the views are that there is limited job creation for local communities, there are negative environmental impacts and there are also negative consequences in relation to socio-economic aspects in host towns. In mitigating the adverse effects raised by community members, the study recommends that projects must have community acceptance and support from all stakeholders, including local municipalities. All host communities must be engaged, there must be a proper consultation, and all members must be aware of the positive effects and negative effects of projects. In relation to socio-economic issues, renewable energy companies need to fund and implement related projects that will address community needs and the negative consequences emanating from project implementation. It is therefore recommended for local communities to be vested in the long-term presence and success of renewable energy projects and also acceptance, and they need to see tangible and authentic benefit sharing from the projects. They need to be involved in all project stages.
Open Access
Compliance of tourism SMME accommodation establishments in the Mangaung Metropolitan Municipality
(University of the Free State, 2022) Ntsane, Ramahetlane John; Van Rooyen, D.
Since the global economy has experienced a decline in economic activity over the past few years due to the outbreak of the Covid-19 pandemic which negatively impacted on the lives and livelihoods of people across the world, it was important to intervene via research to assist the tourism accommodation sector. Globally, governments had to devise contingency measures to resuscitate economic activity. In RSA, President Ramaphosa highlighted that one of the key interventions that can revive the economy is to support the tourism Industry which has potential to create jobs due to its labour-intensive nature of its operations and its interconnectedness with other sectors. Because the tourism industry suffered great loss during lockdown (since March 2020), the South African Government introduced relief funds for SMMEs including SMMEs in the tourism Industry, specifically the accommodation subsector which consists of guesthouses, lodges, B&Bs, and hotels, amongst others. However, most establishments could not secure the relief funds due to the difficulty of complying with various legislations. Hence, this study investigated the compliance of SMMEs (aligned to tax, labour, and B-BBEE legislation, as well as company registration) as Tourism Accommodation Establishments in the Mangaung Metropolitan Municipality. A quantitative study was undertaken to elicit data via survey questionnaires which were disseminated electronically via email, together with conducting face-to-face interviews. After data collection and analysis, the findings indicated that there was poor monitoring and evaluation from the Government's side which highlighted the disconnect in communication platforms between SMMEs and Government agencies. It was concluded that there was a need for regular and accurate information dissemination, intensive training, and better networking between entrepreneurs and Government agencies. Recommendations included the improvement of communication lines by exploiting the opportunities available on the 4th IR's digital platforms, and Government agencies earnest involvement and commitment to conduct more effective mentorship and coaching, ongoing training, and relevant information sessions to connect with SMMEs by promoting the DDM model.
Open Access
The socio-economic impacts of mine closure: A case study of Ga-Nala in Mpumalanga
(University of the Free State, 2022) Mqotyana, Zolile Asanda; Marais, J. G. L.
The finite nature of natural resources compels the downscaling and closure of mines. While the environmental aspects of mine closure have been significantly dealt with in research and international literature, the socio-economic factors of closure have not received adequate attention. This study examines the experiences of ordinary miners and the general community on the socio-economic consequences of downscaling and mine closure. A qualitative research methodology was applied with the experiences of participants placed under investigation. The study conducted reveals that the neglect of social and economic consequences of mine closure results in the failure of mine closure processes. Furthermore, the study shows that although there have been some significant inroads to the advancement and transformation of South African legislation regarding mine closure policy, more effort is still required to strengthen the regulation of mining operations to ensure sustainability. Together with mining institutions, the government and all relevant stakeholders have the joint responsibility to improve oversight strategies and initiatives to respond to mines' inevitable downscaling and closure. Amongst many recommendations, the study points to industrial transformation, the implementation of skills development, skills transfer programmes and labour mobility schemes to respond to the inevitable downscaling and closure of mines.
Open Access
The role of social entrepreneurship in reducing poverty: A case study of Anchor of Hope
(University of the Free State, 2022) Matebese, Noluvuyo; Van Rooyen, D.
Social entrepreneurship has, over the years, come to be known as an important element in the development of society at large (Ferri, 2014:12). Governments and researchers such as Ferri (2014) have displayed interest in understanding this phenomenon. The role of social entrepreneurship in reducing poverty is what the researcher is trying to uncover in this study. Social entrepreneurship is defined as an action that is innovative in using resources to pursue a need in an ever-changing world to address social needs (Mair & Marti, 2006). Furthermore, social entrepreneurship is said to be associated with using enterprise methods to satisfy social reasons (Dey & Teasdale, 2013). Drawing knowledge from the definition, it appears that social entrepreneurship involves financial gain or profit and giving social value. The social value in this study links to poverty reduction. Social enterprises are therefore seen as a critical factor in development and poverty alleviation (Mair & Marti, 2006). Poverty has different definitions, and it is looked at from different perspectives. Often, there is a claim that poverty must be based on logical argument and science, but there is no correct, scientifically agreed definition because it is inevitably a political concept and, thus, an inherently contested one (Ludi, 2007). One definition is that poverty is a state whereby a person is poor because his or her income level falls below the minimum level necessary to meet basic needs (World Bank, 2019). Millions of people around the world live in extreme poverty and hunger, and many people in extreme poverty are found in Africa. This will be looked at in length in the literature review section. South Africa has also proven to have high levels of inequality, poverty, and unemployment. The South African government has, therefore, called upon businesses to play a role in transforming and developing better conditions for all to live in. Business on its own is broad, and it calls on all sectors within it to play a part. One of them being social entrepreneurship. It can be used as an innovative way of fighting poverty and other social and economic ills that hinder the development of this nation (Mohammed & Ndulue, 2017). Non-profit organisations (NPOs) are also encouraged to take a more entrepreneurial and business-oriented approach in order to generate revenue and be self-sustaining while providing social value services (Mohammed & Ndulue, 2017).
Open Access
The impact of mine closures/downscaling on small-town economies: An analysis of the Koffiefontein mine
(University of the Free State, 2022) Kale, Oupa Abraham; Cloete, J. S.; Marais, J. G. L.
Over the past 20 years, the South African mining industry has been characterised by mine closure and downscaling. Not only in South Africa, but also in many other countries, local communities, mineworkers, as well as local economies are severely affected by such closures and downscaling. This study looks specifically at the context of the Koffiefontein mine in the Free State province of South Africa and focuses on the effects of unemployment following mine closure. In order to discuss the implication of mine closure in this specific context, the researcher conducted semi-structured interviews with former Koffiefontein mineworkers, municipal officials from the area, as well as the broader community. Snowball sampling was employed to recruit interviewees, who were asked to comment on their lived experience post mine closure, specifically as it relates to their employment. The study shows that mining activities account for this area's main economic activities. Further, the research indicates that in addition to jeopardising the local community and former mineworkers' livelihoods, the closure of the mine contributes to family disintegration, an increase in crime, psychological distress, income loss, and high levels of migration. Based on these and other related social issues discussed in this study, the researcher recommends that programmes be implemented to increase skills transfer and capacity building. This will allow for labour mobility post mine closure.
Open Access
Unemployment and youth development pathways: A case study of Botshabelo, Free State, South Africa
(University of the Free State, 2022) Yanta, Dimakatso Veronica; Magaiza, G.
Unemployment is a serious socio-economic challenge for many countries, thereby warranting international interest as evidenced by the Sustainable Development Goals (SDG), wherein the promotion of sustainable, inclusive, and decent jobs for all is advocated (World Bank, 2015). Cloete (2012) defines unemployment as an economic issue that possesses a threat to human dignity. The focus on youth unemployment is motivated by the fact that youth are the biggest cohort with an unemployment rate of 43.2% of new jobseekers in the first quarter of 2021 and are therefore the most vulnerable group regarding unemployment (StatsSA, 2021). Unemployment here refers to those who can work and are looking for work, but cannot find work (Cloete, 2012). Cloete (2012) continues to describe unemployment in the South African context as having an indisputable structural or systemic character. Systemic unemployment refers to a pattern, practice, or policy of discrimination that has a broad impact on a class or category of persons within an industry, profession, company, or geographic area. For example, when older employed workers are pushed to leave their jobs in order to accommodate young employees on jobs like internships, learnership, and apprenticeships (Lopez, Hart & Katz, 2021). Structural unemployment on the other hand, implies the total inability of an economy to provide opportunities for the overall labour force. This is the type of unemployment that is the hardest to address because of limited available resources. This can be seen by the increasing number of unemployed youths in South Africa. This has resulted in the strain of the unstable economy and lack of jobs in the country. In addition to clarifying the term "unemployment" it is necessary to define "youth" as a concept. Youth is a broad and disputed concept because of its operational definition, which differs widely from country to country. The United Nations defines "youth" as people between 15 and 24 years of age (United Nations, 1992). In South Africa, youth are defined as people aged 14 to 35 (National Youth Act, 1996). According to Du Toit (2003:4), "the age of 15 years is the stage at which children are permitted to enter the labour market in South Africa." Having explained these different definitions, it will be proper to use the South African definition for the purpose of this study. The South African definition of youth seems ideal, given the context in which the study is taking place. The study will explore development pathways and how unemployment impacts these youth development pathways. A Pathways Framework will be used to provide clear, explicit experiential goals for youth. The pathways approach believes that it is never too late to start with the development of youth (Chi, 2010). The pathways lens looks at how individuals move within, across, and through learning spaces toward possible futures. It therefore means that pathways are the yardsticks of how an individual's future is designed, shifted, or facilitated by external structures (Bell & Blauflower, 2012). The study will continue to investigate the effect of unemployment on these development pathways globally, in South Africa, and eventually in Botshabelo township. The concepts, causes, and development pathways will be thoroughly discussed in the literature review chapter. It is important to note that South Africa’s concept of youth development is influenced by the historical conditions, particularly apartheid, that have shaped the country and its democratic goals. This history is based on the need to attain the principles of social and economic justice, human rights, empowerment, and participatory citizenship. In this study, youth development refers to the process of finding employment and developing young people's livelihoods so that they can participate in economic activities (Hill, Skattebol, Griffiths & Wong, 2015). Development determines South Africa’s future; hence, it is at the core of its development agenda (UNFPA, 2006; Moultrie & McGrath, 2007). Youth unemployment and development should be addressed and attained through integrated and sustainable policies and programs that seek to improve the quality of their lives.
Open Access
Socio-economic influences of mining on community: A case study of Khumani mine
(University of the Free State, 2022) Badenhorst, Elizna; Cloete, J. S.; Marais, J. G. L.
The South African mining industry is understood to form part of the core of state building in the country. The impact of mining has led to various developments in South Africa, such as the Mine Health and Safety Act, 29 of 1996, the Mineral and Petroleum Resource Development Act, 28 of 2002, the Mining Charter, and Social Labour Plans (SLPs), together with a multitude of mandatory codes of practice. Unfortunately, the mining industry also contributed to many social challenges and inequalities in their local communities (Burger, Marais and Van Rooyen, 2018). This study explored the socio-economic influences of the Khumani mine on the Gamagara local municipality community in the Northern Cape. The research aimed to understand the social and economic outcomes of mining activities on surrounding communities and evaluate how mining companies and the government attempt to address these consequences. Empirical research was conducted on the Khumani mine through a qualitative enquiry. Key informant interviews were conducted with various role-players, such as community leaders, officials from NGOs, government officials, mining officials and others. The study's key findings are aligned with the elements described in the available literature. The study determined that Khumani mine provided significant socio-economic contributions to the local community; however, the influence of their contributions in terms of SLP and CSR initiatives is short-lived, and return on investments is not calculated, thus falling short of ensuring the sustainability of projects. The mining industry is abrasive and disrupts natural landscapes, local communities, and their economies. Although social disruptions are understood to even out over time, mining companies must ensure that they capacitate impacted communities to support their livelihoods sustainably. The successful implementation, diversification and continued monitoring of sustainable development initiatives can ensure that the economic benefits experienced through mining boom cycles can support host communities during lower commodity prices and eventual mine closure.
Open Access
Diversification for sustainable development in coal mining industry: A case of South African coal mining industry
(University of the Free State, 2022) Peta, Theresa; Marais, J. G. L.
The study sought to investigate the diversification strategies that the South African coal mining industry can adopt when planning for its post-mining economy in order to achieve economic, social, and environmental sustainability. Literature has been reviewed on the rationale for mining sustainability, transparency, and diversification for sustainable development and on the benefits of combined reportage and disclosure in the mining industry in South Africa. Previous studies were also examined and they showed that mining decline and closures pose severe challenges to mining firms' sustainability in South Africa. Therefore, when making decisions, mining companies should consider and integrate issues around the economy, society, and the environment to achieve intergenerational equilibrium, which is key to sustainable development. The study employed a research design dependent on secondary data from published mining company reports. The study was confined to four coal mining companies in South Africa. Both qualitative and quantitative approaches were used in data analysis. Findings from the study revealed that whilst some companies made new acquisitions in the same coal mining industry, others expanded their markets into other industries and that form of diversity is imperative. Therefore, recommendations are that coal mining companies use diversity through acquisitions for coal mining and also that companies report environmental effects and resolutions for accountability and transparency.