Development of an agricultural food enterprise model in rural towns in Vhembe district, Limpopo province, South Africa
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Date
2023
Authors
Mahopo, Tjale Cloupas
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
Introduction: The street food enterprise underwrites food security by bringing food to local communities. It is a growing source of employment and income for economically challenged households. Yet, it continues to face challenges such as lack of support from various stakeholders. This study aimed to develop an agricultural food enterprise model of competitiveness for the street food enterprise in rural towns in the Vhembe District of the Limpopo Province in South Africa.
Methods: A cross-sectional study design and mixed methods approach were used. Five hundred and eleven (511) street vendors of ready-to-eat foods participated in the study. Convenient sampling was done in three rural Vhembe District towns. Quantitatively, a structured questionnaire was used to measure their socio-economic and operational characteristics, and the dietary diversity of the foods sold. A convenient sampling was further used to sample 55 participants for a qualitative study. A six-step value chain analysis and Porter's Diamond Model of Competitiveness components were used as a guiding framework. In-depth interviews were used to explore the perceived challenges and proposed solutions. Descriptive statistical analysis, thematic qualitative analysis, and value chain analysis using components of Porter's Diamond Model were applied across the study. A SWOT analysis was performed in the final step to diagnose the value chain's details and inform the development of the street food model.
Results: The vendors were mainly South African women aged 35-54 years who were primarily motivated into the enterprise by unemployment and financial challenges. Their businesses contributed about 82% of their household income. The foods they sold had poor diversity, with 70% comprising fewer than five food groups and starchy staples, a common food group. The value chain is short with poor infrastructure. It includes purchasing, storage, transportation, production, and consumption. The main actors involved are input suppliers (formal and informal traders), transporters, local authorities, and customers. The vendors perceived four main factor conditions of Production, Chance condition (new inventions and technologies, shifts in the financial market, decisions of foreign governments, and wars), Role of government, and Related and supporting industries as the conditions inhibiting the competitiveness of the street food enterprise. Poor government support, the cost of water, and costly finance were critical subcomponents. Thus, the result of the study informs a Diamond Model of Competitiveness with a partially different structure from that of Porter's Diamond Model. The results suggest that the factor conditions that explain the competitiveness of an informal survivalist enterprise like street food vending are prioritised differently than when used to explain the competitiveness of a formal organisation.
Recommendations: Government needs to adopt a collaborative approach to the transformation of street vendors, while protecting them from the impact of factors that inhibit their competitive performance. Key strategies include access to water, short-term finance solutions, improved infrastructure, and provision of relevant training.
Description
Thesis (Ph.D. (Sustainable Agriculture))--University of the Free State, 2023
Keywords
Street food enterprise, agricultural food enterprise, value chain, porter's, diamond model, competitiveness, dietary diversity