The role of small-scale agricultural business on youth employment at a selected district in the Eastern Cape, South Africa

Abstract

Agriculture remains an important economic sector in South Africa’s economy. It includes all economic activities from the provision of farming inputs, farming and adding value. It also includes crop and animal production. In the Eastern Cape like anywhere else in the country, most arable land reserved for farming and agriculture is rooted within the rural areas and agriculture is exercised at a small scale. While various government development programmes have been put in place to encourage farming and entrepreneurship, most rural farmers are still experiencing challenges that stagnates entrepreneurial activities. The purpose of this research was to explore the role of small-scale agriculture in promoting youth entrepreneurship in South Africa’s rural areas; the main goal of this study was to explore levels of entrepreneurial activities in the province and formulate strategies to generate a favourable climate where agri-business and entrepreneurship activities will thrive. The research took place in the Eastern Cape within the Mhlontlo municipality. A random sampling technique was used to select the research participants. An aggregate of 80 participants participated in the study including 60 students, 10 lecturers and Teaching Assistants, as well as 10 agriculture officials and farmers in the area. A mixed research method was adopted in the study because it advances the logical assimilation of quantitative and qualitative data within a single exploration or sustained program of inquiry. Participation was optional, and interviewees were free to pull out from the study without any consequence. Data was gathered through interviews, focus groups and questionnaires. Data from the study was systematically analysed through computer aided data analysis software such as Atlasti for qualitative data and SPSS for statistical analysis of quantitative data. Findings reveal that some of the youth participants in this study have a negative perception towards agriculture’s ability to eradicate youth unemployment in the rural areas and the country at large. The majority of the participants indicated that entrepreneurial activities cannot thrive in the area because of the bad business environment. The negative entrepreneurship climate in the province does not allow small-scale farmers to expand their agri-businesses. Impediments to entrepreneurship in the province has been indicated as follows: inadequate entrepreneurial services, lack of education and training, limited competency in business management and managerial expertise, limited access to information and limited access to funding and finance.