A case study of the challenges faced by emerging black fishing enterprises on the Cape West Coast

Abstract

New Black business entrants into the South African fishing industry are confronted with a range of challenges on the road to full sustainability. In addition to the need to compete with established white commercial companies with vast resources, most of the successful applicants who won rights ended up with nothing but a paper quota because most do not have their own boats to either catch their allotted quota, or they lack the facilities to process their catch. In this thesis an organisational needs analysis of a select number of emerging fishing enterprises was undertaken with a view to determine their specific needs for support services in order to make recommendations with regard to a customised support programme to assist them in their quest for business sustainability. The research indicates that the majority of the emerging enterprises are first-generation novice businesses with a need for a comprehensive range of support services. They not only lack a full understanding of the inherent risks of their industry, but most have failed to do any sort of risk planning. This lack of understanding not only constrains their engagement with fishing policy processes but also contributes to a situation of dependence on external consultants for the preparation and submission of their rights allocation applications. Furthermore, most of the current crop of business leaders have a low level of formal education and did not receive any business training prior to venturing into the industry. This vicious cycle of general ignorance of the risky nature of their sector, lack of understanding of industry process, and low education levels, has resulted in limited understanding and knowledge of the various forms of financial and other assistance available to emerging businesses. The researcher recommends intervention in all of the areas mentioned above as critical if the stated objective of the South African government, namely the promotion of black economic empowerment, is to be achieved.