Handicraft small enterprises as an instrument for rural economic growth and poverty eradication
-
DOIhttp://dx.doi.org/10.21511/ppm.18(4).2020.03
-
Article InfoVolume 18 2020, Issue #4, pp. 25-36
- Cited by
- 922 Views
-
888 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
In South Africa, exploiting economic opportunities in the handicraft sector could create livelihood and employment for ordinary citizens living in rural areas. The potential contribution of handicraft small enterprises to sustainable livelihoods and poverty alleviation is yet to be fully exploited. It is also regarded as a sector with great growth potential, but the degree of support provided to the handicraft sector is low. The study aims to evaluate the socioeconomic factors influencing the viability of handicraft small businesses operating in KwaZulu-Natal. Data collection was drawn from a stratified random sample of 196 handicraft practitioners operating in different areas of KwaZulu-Natal Province with a structured questionnaire. Data analysis was performed with the STATA statistical package. The results obtained from the study have shown that 84 enterprises (42.86%) were not viable, whereas 112 of the 196 handicraft enterprises (57.14%) were viable. The percentage of overall correct classification for this procedure was equal to 77.96%. Percentage sensitivity for the fitted logistic regression model was equal to 60.71%. Percentage specificity for the fitted logistic regression model was equal to 82.14%. The p-value obtained from Hosmer-Lemeshow goodness-of-fit test was equal to 0.0884 > 0.05. This indicates that the fitted logistic regression model is fairly well reliable. The findings from the analysis showed that two factors significantly influenced the viability of handicraft enterprises. These two factors were the belief that handicraft business could sustain the handicraft practitioner, and the level of support for handicraft businesses from non-governmental organizations is decreasing.
Acknowledgment
South Africa SarChi Chair, Nation Research Fund and Department of Science and Technology, South African, for providing funding for this research.
- Keywords
-
JEL Classification (Paper profile tab)L20, I30
-
References33
-
Tables7
-
Figures3
-
- Figure 1. The places of production of artifacts (n = 196)
- Figure 2. Number of years in business (n = 196)
- Figure 3. Perception of handicraft business (n = 196)
-
- Table 1. Summary of gender, age, and race (n = 196)
- Table 2. Level of formal education (n = 196)
- Table 3. Summary of percentages of artisan attributes (n = 196)
- Table 4. Assessment of sales turnover (n = 196)
- Table 5. Loan applications by respondents (n = 196)
- Table 6. Results obtained from logit analysis
- Table 7. Summary of two research hypotheses tested as part of the study
-
- Abisuga-Oyekunle, O. A., & Fillis, I. (2016). The Role of Handicraft Micro-Enterprises as a Catalyst for Youth Employment. Creative Industries Journal, 10(1), 59-74.
- Aigbavboa, C. O., & Thwala, W. D. (2014). Challenges facing black owned small and medium handicraft companies: A case study of Nelspruit- Mbombela Municipality, South Africa. Journal of Economics and Behavioural Studies, 6(10), 771-778.
- Annamma, J., John, F. S., Alladi, V., Jeff, W., & Ricky, C. (2012). Fast Fashion, Sustainability, and the Ethical Appeal of Luxury Brands. Fashion Theory, 6(3), 273-296.
- Brennan, L., & Fickett, D. (2011). Developmental entrepreneurship in Sub-Saharan Africa. Assessing financial and social returns (IIIS Discussion Paper, No. 386).
- Buss, J. (2018). From Homestead to Roadside to Gallery: The Social Life of Late Twentieth Century and Early Twenty-First Century Zulu Ceramics (Master’s thesis). University of the Western Cape.
- Chudasri, D., Walker, S., & Evans, M. (2013). Directions for Design Contributions to the Sustainable Development of the Handicrafts Sector in Northern Thailand. Unpublished.
- Ferraro, E., White, R., Cox, E., Bebbington, J., & Wilson, S. (2011). Craft and sustainable development: reflections on Scottish craft and pathways to sustainability. Craft + design enquiry, 3.
- Finscope. (2010). FinScope South Africa Small Business Survey 2010. Finmark Trust.
- Gecse, G. (2013). Logistics practice of small and medium sized enterprises (Ph.D. Thesis). Budapest Corvinus University.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective. Pearson: London.
- Hashim, F. (2012). Challenges for the internationalization of SMEs and the role of government: the case of Malaysia. Journal of International Business and Economy, 13(1), 97-122.
- Herrington, M., Kew, P., & Mwanga, A. (2016). Tracking entrepreneurship in South Africa: A GEM Perspective.
- Kuhlman, T., & Farrington, J. (2010). What is Sustainability? Sustainability, 2, 3436-3448.
- Levy, P. S., & Lemeshow, S. (2013). Sampling of populations: Methods and applications. John Wiley: New York.
- Mcauley, A., & Fillis, I. (2005). Careers and Lifestyles of Craft Makers in the 21st Century. Cultural Trends, 14(2), 139-156.
- McIntyre, R. (2014). The Role of Small and Medium Enterprises in Transition: Growth and Entrepreneurship. UNU World Institute for Development Economics Research (UNU/WIDER). Research for Action 49.
- Mustafa, M. (2011). Potential of Sustaining Handicrafts as a Tourism Product in Jordan. International Journal of Business and Social Science, 2(2), 145-152.
- Mutandwa, E., Taremwa, N. K., & Tubanambazi, T. (2015). Determinants of business performance of small and medium size enterprises in Rwanda. Journal of Developmental Entrepreneurship, 20(1), 1-12.
- Nyawo, J., & Mubangizi, B. C. (2015). Art and craft in local economic development: Tourism possibilities in Mtubatuba Local Municipality. African Journal of hospitality. Tourism and Leisure, 4(2), 1-15.
- Organisation for Economic Co-Operation and Development. (2013). Local Strategies for Youth Employment Learning from Practice (No. 90161 2013). Paris.
- Oyekunle, O. (2017). The Contribution of Creative Industries to Sustainable Urban Development in South Africa. African Journal of Science, Technology, Innovation and Development, 9(5), 607-616.
- Oyekunle, O. A. (2014). Building the Creative Industries for Sustainable Economic Development in South Africa. International Journal for Sustainable Development, 7(12), 47-72.
- Oyekunle, O. A., & Sirayi, M. (2018a). The role of design in sustainable development of handicraft industries. African Journal of Science, Technology, Innovation and Development, 10(4), 381-388.
- Oyekunle, O. A., & Sirayi, M. (2018b). The role of creative industries as a driver for a sustainable economy: A Case of South Africa. Creative Industries Journal, 11(3), 225-244.
- Reynolds, P. D., Camp, S. M., Bygrave, W. D., Autio, E., & Hay, M. (2001). Global entrepreneurship monitor (summer report). London Business School and Babson College.
- Sánchez-Medina, P. S., Corbett, J., & Toledo-López, A. (2011). Environmental innovation and sustainability in small handicraft businesses in Mexico. Sustainability, 3, 984-1002.
- Sarma, M. K. (2008). Traditional crafts of Assam: Development dynamics through touristic marketing. New Delhi: Anshah Publishing House.
- Simpson, S. H. (2015). Creating a Data Analysis Plan: What to Consider When Choosing Statistics for a Study. The Canadian Journal of Hospital Pharmacy, 68(4), 311-317.
- South African Department of Trade and Industry. (2008). Annual Review of Small Business in South Africa 2005–2007. Final Draft. DTI: Pretoria.
- Sreekanta, V. (2008). Linking the arts to environment & sustainable development. Connect to Culture. Singapore: Asia-Europe Foundation.
- Statistics South Africa. (2017). Poverty Trends in South Africa report.
- Walker, J., & Donaldson, C. (2010). Intervening to improve outcomes for vulnerable young people: a review of the evidence (Research Report DFE-RR078). Newcastle University.
- Zargham, H. (2007). Sustainable tourism development and handicrafts in the developing world. Sustainable Development and Planning, 102, 1011-1017.