Factors determining co-operative small enterprises access to co-operative grant scheme in South Africa

This paper investigates factors determining co-operative small enterprises access to the co-operative grant incentive scheme in South Africa. The raw data used in this study were extracted from the Cooperative Incentive Scheme (CIS) database over the sample financial period FY 2010/11 to FY 2014/15. The amount approved was modelled as the dependent variable, while the turnover prior to application, number of employees, number of members, number of males, number of females, number of youth, number of the disabled, and purpose of application for additional capital were the exploratory variables in the model. Statistical Package for Social Sciences (SPSS) version 24 for Windows was used to perform data processing and statistical analysis using the multiple linear regression method for the overall model and stepwise multiple linear regression method at sectoral level. Estimated results indicate that turnover prior to application, the number of members, males, females and youth had a significant impact on the amount approved for the applications submitted by firms in the agricultural and manufacturing sectors during the sample financial years under review. The paper concludes that the department of small business development should focus on implementing strategies that promote access to the CIS grant funding targeting SMEs co-operatives in the agriculture and manufacturing sectors located mainly in the rural areas of South Africa.

Keywords: small and medium enterprises, co-operative, grant, incentive, South Africa.
JEL Classification: L26, H81