Browsing by Subject "job creation"

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    The Koup Fencing Project : community-led job creation in the Karoo
    (2014-09-17) Nattrass, Nicoli; Conradie, Beatrice; Conradie, Inge
    This paper discusses a community-led fencing project in the Koup, an arid predominantly sheep farming district in the South African Karoo. It highlights the role of supportive government officials in sourcing funding and the importance of committed individuals in overcoming collective action problems amongst participating farmers. The project had a strong empowerment dimension in that fencing team leaders were drawn from the ranks of unemployed people in Laingsburg town and they were responsible for recruitment into the project and for the day to day management of the work. Comparative analysis of the socio-economic position of the fence workers with data from the 2011 population census of coloured people living in Laingsburg town suggests that the fence workers were relatively poor and that the project was appropriately targeted for a poverty alleviation programme. This was in part because workers were required to camp on farms for two weeks at a time, thereby resulting in the project automatically selecting for those most committed to earning additional income. The study revealed that the fencing workers identified themselves as general agricultural workers but had skills and experience from other sectors including construction and services. Urban-based agricultural workers have lived in Laingsburg for at least three decades i.e. before the shift of workers off farms that took place across South Africa after 1990. The study sheds light on this long-standing, but under-studied dimension of urban poverty and on the diverse strategies (including reliance on government grants) that people use to combat it in the Karoo.
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    The Impact of Section 12J Venture Capital Companies' Regime on Small and Medium Enterprises in South Africa
    (2020) Makhalemele, Moeketsi; Biekpe, Nicholas; Makoni, Patricia
    This study sought to examine whether the use of tax incentives to boost investment into the SME sector is an effective policy for economic development. More specifically, the study focused on the Section 12J tax incentive of the Income Tax Act of South Africa, which underpins the current venture capital companies' (VCC) regime for this country. This VCC regime is aimed at addressing the challenge of lack of access to finance by SMEs, and it does so by incentivising venture capital investors to provide equity capital to qualifying SMEs. These SMEs are, in turn, expected to grow and help reduce the economic challenges of poverty and unemployment in South Africa. A mixed methods research approach was adopted for this study. It was also inductive in nature, based on primary data collected from a survey of various stakeholders of the VCC regime using a convenience sampling method. The data variables of the study were based on factors relating to the impact that the VCC regime has had on SMEs in terms of financial performance and creation of decent employment. The study concludes that the VCC regime has had a positive impact on the South African SME sector in terms of financial performance and creation of decent employment. As a result, the VCC regime has shown to be an effective tool for addressing various economic challenges, such as: lack of access to finance faced by SMEs, high failure rate of SME businesses, and poverty alleviation through provision of decent employment by SMEs. Thus, the resultant recommendation submitted in the study is that the VCC regime should as such be extended beyond its current sunset date in order to ensure the South African economy continues to enjoy the benefits that the regime has to offer.