Authors : Joseph Nembo Lekunze and Usapfa Luvhengo
Abstract: The performance of Small Scale Agricultural Businesses (SSABs) is vital as they generate employment and income for poor rural communities. This study examines export as a pillar of globalisation which was used as an indicator to access performance by rural based Small Scale Agri-Businesses (SSABs) in South Africa. Since, the democratic transition in 1994, SSABs are exposed to the forces of globalisation and are exposed to various international forces which have been presumed to result in poor performances and closure of some of these businesses across rural South Africa. The study addresses a basic question in the small business/globalisation literature: what is the impact of globalisation on small firm performance? Arguing from the new growth theory, this study investigate exportation opportunities (exogenous factor for growth) that result from trade liberalisation (as a component of globalisation) and its impact there of on the SSABs in a rural region of South Africa. Business success was measured by owner’s perception of growth in employment and gross profit. The results lead to the conclusion that higher levels of exporting contributes to improved economic performance, hence by inference exogenous development path is relevant to better SSAB performance.
Joseph Nembo Lekunze and Usapfa Luvhengo, 2020. Export of Agricultural Products as an Indicator to Performance of Rural Base Small Scale Agri-Businesses, South Africa. Journal of Engineering and Applied Sciences, 15: 2685-2692.