Abstract
This study investigated the challenges faced by agricultural cooperatives in Mpumalanga, with the Bushbuckridge Local Municipality serving as the selected geographic area. The research sought to understand the motivations for cooperative formation, the contributions of cooperatives to community livelihoods, as well as the operational, financial, and governance challenges that constrain the cooperatives’ sustainability. The study drew out the structure and agency literature in unpacking the challenges facing cooperatives. The explored body of literature covers financial constraints, governance and leadership challenges, market access and infrastructure challenges, social and cultural barriers, as well as climate change risks. Data was collected through interviews with cooperative members, and it was analysed thematically. The findings revealed recurring themes including water scarcity and infrastructural deficits, financial constraints and dependence on limited government support, governance and leadership challenges, market access barriers, as well as youth disengagement. Despite these constraints, cooperatives contribute significantly to food security, household income, and social cohesion, demonstrating resilience in the face of adversity.
The study further tested these findings against the Balanced Scorecard (BSC) framework. While BSC captures financial and customer-related aspects, it fails to adequately account for the social, environmental, and generational dimensions that are central to cooperatives. BSC does not address youth involvement, resilience strategies, or the developmental role of cooperatives in rural communities. This critique highlights the need for an expanded evaluative framework that integrates financial, social, and environmental indicators. The study contributes to both academic debates and policy discussions on rural development by highlighting the limitations of applying conventional business frameworks to community-driven agricultural enterprises.