The perceptions of beneficiaries about the contribution of micro enterprises as a poverty reduction strategy : a study of women beneficiaries in Johannesburg.
Date
2014-08-20
Authors
Chipuriro, Rejoice
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Abstract
Micro enterprises have become popularised globally as the favoured option for development and have played a key role in poverty alleviation. The main premise of using micro enterprises has been to build the capacity of the individual to be self- sustaining and to move away from the continued dependency on state welfare. Micro enterprises are also seen as a key tool to allow participation of the disempowered population. In South Africa micro enterprises have been hailed by government as playing a pivotal role in creating employment opportunities for the poor people. The study was conducted to gain a deeper understanding of how beneficiaries view the role played by micro enterprises in reducing poverty. This qualitative research was based on case studies of 12 female participants who were selected using convenience sampling based on their availability and participation in micro enterprise initiatives. An interview schedule was used and the interviews were tape recorded. The major findings that emerged were that beneficiaries perceive micro enterprises as meeting their basic needs like food and rates, to others they were a way of supplementing income. Most participants perceived micro enterprise rather as a hobby than an effective income generating activity. None of the beneficiaries had business skills, equipment or information and capital to grow their business beyond their residential areas. None of the micro enterprises were able to create employment for others. Various factors such as lack of capital, low literacy levels, poor business management skills and non-entrepreneurial mind-set amongst others have resulted in this failure. Beneficiaries of this study perceived the income from their micro enterprises not enough to qualify their micro enterprises as a poverty reduction tool. The main conclusion drawn from the study is that whilst profit generated through participating in micro enterprises meet the beneficiaries’ basic necessities, it is insufficient income to meaningfully reduce poverty.
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Keywords
Poverty, Beneficiaries, Micro enterprises, Poverty reduction strategies, Social development