Abstract
M.Com.
This technical research report entails a very limited study as prescribed in the
requirements of the professional Master’s degree in Local Economic Development
(LED). Over the years, LED strategies have played a significant role in alleviating
socio-economic challenges such as poverty, unemployment, and inequality issues
across local communities of South Africa. The definition and concept of LED has been
described and defined globally in many ways, but all definitions imply job creation,
inclusive economic growth, wealth creation, and the development of the local
economies. Most importantly LED has played an enormous role in the local
communities of South Africa through the promotion of entrepreneurship development.
The focus in this LED research project is limited to a township incubator called
Galeshewe SMME Village Incubator. The incubator is managed by the Sol Plaatje
Municipality. The primary aim of this project was to determine the status quo of the
workings of the Galeshewe SMME Village Incubator in order to make
recommendations to the Sol Plaatje Municipality that could increase the success rates
of SMMEs within this incubation centre. The investigation followed a cross-sectional
mixed methods research design, involving a quantitative survey and qualitative
interview approach. The quantitative results revealed that high levels of incubator
service delivery diversity had a detrimental effect on incubator success. On the other
hand incubator success was supported by good recruitment and selection practices.
The major challenges experienced by incubatees related to obtaining finance,
establishing contracts with suppliers, obtaining external advice, support from incubator
management and the need for skills training. In particular incubatees sought external
advice on how to build and expand their market base, accumulate profits and to present
good business plans. These findings were gender independent. The qualitative results
revealed a need to revise the incubator business process model to enhance overall
success. The research laid the foundation to guide future research in Galeshewe
SMME Village Incubator and to validate results obtained in this project.