An assessment of the Extent of Small-scale business venturing in Rural areas: A case study of Molemole Local Municipality in Capricorn District of Limpopo Province

Abstract

The study was premised on anticipation for the existence of small businesses that `seemed to be widespread within households in the traditional authorities of Molemole local municipality. The observation prompted the researcher to investigate two aspects related to these ventures; how these small-scale businesses and other income generating opportunities impact livelihoods of members of the communities. The study was conducted in rural communities of Molemole Local municipality of Limpopo Province. Data was collected using a structured pre-tested questionnaire from members of the community. Additional data was collected from traditional leaders of the four traditional authorities namely: Machaka, Makgato, Ramokgopa and Manthata through focus group discussions. Multi-stage clustered proportional random sampling technique was used to select the sample for this study of 150 individuals from the four traditional authorities. SPSS computer software was used to analyse data from the structured questionnaires while Likert scale was used to analyse the data collected from the focus group discussion. Descriptive statistics was used to summarize the data while Binary logistics regression model was used to analyse the influence of socio economic factors on the income levels of the respondents (from both businesses and other sources). The findings of the study show that biographic characteristics proved to have a great effect/impact on how rural community members generate their livelihoods (through income generation). Most of the respondents were found to be females, and this had a positive impact on their level of income. Majority of the respondents had secondary education as their highest level of education which caused them to have limited access to external employment. Services rendered by the few small businesses were found to be unsatisfactory by the community members. Traditional leaders stated that it was important for residents in their communities to own businesses as this will provide them with good income and services to the communities. The study concluded that income did improve the livelihoods of community members. Amongst others the study recommended for increased women empowerment, educational opportunities and encouragement to communities to initiate business ventures.