Advances in Food Science and Technology

Advances in Food Science and Technology ISSN: 6732-4215 Vol. 10 (1), pp. 001-008, January, 2022. © International Scholars Journals

Full Length Research Paper

Evaluation of essential capacities required for the performance of farming small, micro and medium enterprise (SMMEs) in South Africa

V. M. Mmbengwa^1,2*, T. Ramukumba, J. A. Groenewald³, H. D. van Schalkwyk³, M. B. Gundidza⁴ and A. N. Maiwashe⁵

¹School of Natural Resource Management, Nelson Mandela Metropolitan University (NMMU), George Campus, Republic of South Africa.

²University of the Free State, Bloemfontein, Republic of South Africa.

³Department of Agricultural Economics, University of the Free State, Bloemfontein, Republic of South Africa.

⁴School of Therapeutic Sciences, University of Witwatersrand, Johannesburg 1710, Republic of South Africa.

⁵Livestock Business Division, Agricultural Research Council, P/Bag X2, Irene, 0062, South Africa.

Accepted 21 October, 2021

Abstract

The capacity of small, micro, and medium enterprises (SMMEs) plays a pivotal role in ensuring the viability and sustainability of the enterprise. Various types of capacities need to be identified and used to guide farming SMMEs’ planning, implementation and support in the after-care phase. The main objective of the study was to identify and evaluate essential capacities that are instrumental in ensuring the financial success of farming SMMEs in South Africa. Both qualitative and quantitative methods were used to determine the performance of farming SMMEs under consideration. The results revealed that market capacity is essential for financial returns of farming SMMEs in South Africa. Farming SMMEs should be linked to sustainable markets and they must actively participate in both supply and value chains in order to be profitable. Thus, farming SMMEs and their support service stakeholders should consider market access as crucial during pre-and post settlement support. It is essential therefore, that both public and private sectors prioritise market access in their supportive programmes.

Key words: Profitability, capacities, planning, sustainable, performance.