Abstract
The agricultural sector plays a critical role in the local economic development (LED)
setting. The South African government introduced grants to support agribusinesses
to enhance growth and sustainable operations. Agribusinesses are encountering
challenges despite the government grant support, resulting in failure and
unsustainability. The aim of this study was to investigate the impact of government
grants on the sustainability of agribusinesses within the Waterberg District
Municipality in Limpopo Province.
A cross-sectional quantitative survey was conducted using a structured closedended
questionnaire, and 101 respondents were interviewed. An analysis using
SPSS was done using descriptive statistics to determine the impact of government
grants on the operations of agribusinesses. The analysis was also used to identify
the challenges agribusiness encountered that hinder sustainability.
The results revealed that government grants contribute positively to the sustainability
of agribusinesses in the Waterberg District Municipality; however, the support has
created dependence. It was also found that respondents face several challenges
causing their businesses to operate at a loss and forcing them to step out of
business. Nonetheless, it is recommended that respondents should ensure that they
reinvest in their businesses and depend less on government support to have
sustainable enterprises.