Impact of co-operatives on the Local Economic Development of Aganang Local Municipality in Limpopo Province

Abstract

This research study contends that co-operatives can play a pivotal role in the development of the local economy, if they are properly implemented. The central position of this document is that co-operatives in the Aganang Local Municipality have very little impact, if any, on its local economic development. The study reveals that, there are various challenges facing co-operatives development in the Aganang Local Municipality. According to the participants in the study, performance of co-operatives in the Aganang Local Municipality is, to a large extent, negatively influenced by the following constraints: Lack of viability studies before commencement, inadequate technical and entrepreneurial skills, Lack of finance, lack of access to affordable transport, suitable places of work, water, telecommunication services, electricity, quality raw materials and technology, lack of administration skills and mismanagement of funds. The literature reviewed reveals that throughout the developed and developing world, co-operatives have been a significant force in the local economic development. It is also reflected in this document that in many countries co-operatives are among the largest major enterprises. Examples of those countries are the United States of America, Germany, Japan, Italy, and Tanzania. It is common knowledge that, if enterprises/co-operatives have a number of organisational and resources constraints, they tend to fail. It is also vital to indicate that the extent to which co-operatives members are provided with knowledge and skills, determines their overall performance. On the contrary, and based on the findings of this study, co-operatives in the Aganang Local Municipality have been offered few training courses. For co-operatives in the Aganang Local Municipality to succeed, the following are recommended: viability study before establishment of co-operatives, capacitation in terms of technical and entrepreneurial skills and adequate financing