Handicraft small enterprises as an instrument for rural economic growth and poverty eradication

Abstract

In South Africa, exploiting economic opportunities in the handicraft sector could create livelihood and employment for ordinary citizens living in rural areas. The potential contribution of handicraft small enterprises to sustainable livelihoods and poverty alleviation is yet to be fully exploited. It is also regarded as a sector with great growth potential, but the degree of support provided to the handicraft sector is low. The study aims to evaluate the socioeconomic factors influencing the viability of handicraft small businesses operating in KwaZulu-Natal. Data collection was drawn from a stratified random sample of 196 handicraft practitioners operating in different areas of KwaZulu-Natal Province with a structured questionnaire. Data analysis was performed with the STATA statistical package. The results obtained from the study have shown that 84 enterprises (42.86%) were not viable, whereas 112 of the 196 handicraft enterprises (57.14%) were viable. The percentage of overall correct classification for this procedure was equal to 77.96%. Percentage sensitivity for the fitted logistic regression model was equal to 60.71%. Percentage specificity for the fitted logistic regression model was equal to 82.14%. The p-value obtained from Hosmer-Lemeshow goodness-of-fit test was equal to 0.0884 > 0.05. This indicates that the fitted logistic regression model is fairly well reliable. The findings from the analysis showed that two factors significantly influenced the viability of handicraft enterprises. These two factors were the belief that handicraft business could sustain the handicraft practitioner, and the level of support for handicraft businesses from non-governmental organizations is decreasing.