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An empirical analysis of factors affecting the growth of small-scale poultry enterprises in KwaZulu-Natal

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  • Adrian Wynne
  • Michael Lyne

Abstract

Small-scale commercial poultry enterprises are often promoted and used by the government and non-governmental organisations in development projects to generate income and to improve food self-sufficiency and alleviate malnutrition, as poultry is an excellent source of protein. This study shows that the majority of small-scale commercial poultry producers in KwaZulu-Natal come from previously disadvantaged communities and have significantly lower enterprise growth rates than larger poultry producers. The results of a block-recursive regression analysis of data gathered from a sample of 123 poultry farmers in the province indicate that enterprise growth rate is constrained by poor access to credit, high transaction costs and unreliable local markets. Government policies should focus on reducing transaction costs by improving education and physical infrastructure, sponsoring training and mentoring services for small-scale commercial poultry producers, and helping these emerging entrepreneurs to formalise the business institutions needed to manage co-owned resources and to market products collectively.

Suggested Citation

  • Adrian Wynne & Michael Lyne, 2003. "An empirical analysis of factors affecting the growth of small-scale poultry enterprises in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 20(5), pages 563-578.
  • Handle: RePEc:taf:deveza:v:20:y:2003:i:5:p:563-578
    DOI: 10.1080/0376835032000149225
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    Cited by:

    1. Chisasa, Joseph, 0. "Agriculture – A Corporate Finance Perspective," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, issue 1.
    2. Chisasa, Joseph, 0. "Sources Of Growth In South African Sources Of Growth In South African Agriculture – A Corporate Finance Perspective," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, issue 4.
    3. Joseph Chisasa, 2016. "Determinants of the demand for credit by smallholder farmers: survey results from South Africa," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 26-46.
    4. Clover, T.A. & Darroch, Mark A.G., 2005. "Owners' perceptions of factors that constrain the survival and growth of small, medium and micro agribusinesses in KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), June.

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