The role of cooperatives in job creation and sustainable livelihoods : the case of Lepelle-Nkumpi Municipality, Limpopo Province

Abstract

This qualitative exploratory case study looked at how cooperatives helped in job creation and sustainable livelihood in Lepelle-Nkumpi Municipality in Limpopo Province. The study had three objectives which were to explore the functions and nature of cooperatives, to determine their relevance and purpose in improving the living standards of communities, to assess their contribution to job and sustainable livelihood creation and to make recommendations on strategies to improve the contribution of cooperatives to job and sustainable livelihood creation. Seven cooperatives in the municipality involved in agriculture, food processing, ranching, bread making, capacity building and empowerment were studied. Semi-structured face-to-face interviews with 18 participants, 9 cooperative managers and 9 beneficiaries were conducted. Participants were chosen using a non-probability sampling technique. The eight-step descriptive qualitative data analysis method developed by Tesch was used to analyse the primary study data. The results indicated that cooperatives only made a small contribution to the development of stable jobs and means of subsistence. The lack of coherent and clear recruitment policies, gaps in training and acquired skills for managing the cooperatives, delayed provision of subsidies, inability to penetrate the market, lack of product distribution strategies and best practice strategies for expanding cooperative operations all hampered their role in job creation and sustainable livelihoods. The study makes important recommendations to cooperatives management, the Department of Social Development and the Municipality of Lepelle-Nkumpi for the purpose of strengthening the contribution of cooperatives to job creation and sustainable livelihoods.