Construction and validation of a theoretically derived PEST analysis type tool for LED community entrepreneurship programmes in South African rural economies

Abstract

In South Africa today there are many rural economies in decline. Despite the recognition internationally, since the 2nd World War internationally and since 1994 in South Africa specifically, of the value that can be added by specifically targeting Local Economic Development and Entrepreneurship as strategies for an answer to the decline in local economies, success has been limited. More success has in fact been seen in rural communities that have developed through the natural flows of the market than from direct intervention. This progression takes a long time though and the South African situation with all its history cannot wait this long for development. The question asked is why interventions fail, what are the basic factors that make up the local economic development paradigm and how are they affecting the interventions. Information is key to planning and planning is key to successful interventions. A literature review is done in order to establish the basis of LED historically, theoretically and specifically with regards to the South African rural environment, in order to assist in the development of the information required for successful planning of LED interventions. With the most prominent factors derived from this literature review tabled and applied into established Case Study models, a questionnaire is developed for application into rural economies through Community Entrepreneurship programmes or LED vehicles. In order to establish firstly the relevance of the factors and secondly the relevance of the questionnaire, it is reviewed, scored and commented on by a select group of industry practitioners in LED. The opinion of these individuals further validates the use of the factors and questionnaire in baseline LED intervention planning.