Factors influencing the operational performance of co-operatives in South Africa : a case study of uThukela District Municipality

Abstract

Co-operative enterprises are regarded as a vehicle to fight poverty, create employment and boost economic growth in South Africa. A high number of co-operatives in the country were created through initiatives of government agencies. However, co-operative enterprises have for a long time been experiencing operational performance difficulties. The purpose of this study was to examine factors that affect the operational performance of co-operatives in South Africa. Primary data were collected from 136 co-operative members based in uThukela District Municipality, KwaZulu-Natal, using a structured questionnaire. A probability sampling method was used in this study, focusing on simple random sampling. Moreover, a quantitative approach was used for data collection and the data was analysed using the Statistical Package for the Social Sciences (SPSS) version 20 for windows. The data were presented in tabular form followed by the researcher’s interpretations thereof. The demographic findings of this study reveal that the majority of participants are middleaged adults, most of whom are women and who have attained a high-school level of education. Moreover, the findings show that the majority of co-operatives have been in operation for less than five years. In addition, the findings reveal that a larger number of cooperatives in uThukela District Municipality are in the agricultural sector. The findings also reveal that the majority of participants feel that management skills remained the crucial factor to co-operatives’ operational performance. Moreover, a large number of participants highlight that co-operatives operational performance is enhanced by teamwork. In addition, the majority of participants highlight that technical skills affect the operational performance of co-operatives.