The challenges of operating entrepreneurial businesses in restituted land: the case of KwaZulu-Natal.

Abstract

In KwaZulu-Natal, public and private sectors need to increase support for sustainability of Small Medium and Micro Enterprises and or Entrepreneurial businesses. Many SMMEs struggle to overcome failure due to lack of strategic interventions from both government and the private sector. This study focuses on the Land Restitution programme as one of the vehicles that should be used by government to boost SMME development and their business performance. In previous studies, individuals who have received their land back, within the Land Redistribution Programme in KZN have failed to either continue or start viable businesses using the land newly acquired. A total of 76% of the land redistributed has claimants who have not engaged with any business activity using land newly acquired. Attributed to this high level of inactivity is a lack of programmes to assist claimants. Most claimants end up opting for cash instead of land due to fear of failure. Socio-cultural factors, infrastructure and education found to be important elements that add value to small businesses’ behaviour and the way society welcomes them. Methods and strategies employed by the two major sectors in enhancing entrepreneurial businesses were evaluated. Conducted interview sessions with business owners in restituted land contributed to the results of the study. The qualitative research methodology was used and the NVivo programme using thematic analysis was employed for data analyses.