Impact of Entrepreneurial Activities and Income Shocks on Poverty and Vulnerability among Homestead Food Gardeners in North West Province, South Africa

Abstract

Poor households are faced with several challenges which affect their income generating activities. In the North West Province, where this study was carried out, unemployment and food insecurity are prevalent. Hence, homestead food gardeners get involved in multiple income generating activities as a coping strategy. The respondents were selected using a multistep sampling method. The first stage involved selection of villages, where HFG are commonly found were randomly selected. In the second stage, a snowball sampling process was employed to identify and select people involved in homestead food gardening, lastly was to find a sample of 110 HFG. The study found that HFG were experiencing different shocks. The regression coefficients in this study indicated that entrepreneurial income was significantly and positively affected by socioeconomic characteristics and shocks while it was significantly and negatively affected by shocks and challenges. The marginal parameters of perceived vulnerability to poverty were significantly and positively affected by entrepreneurial activities. Socio-economic characteristics significantly and negatively affected marginal effects of perceived vulnerability to poverty. Factors that affected marginal parameters of relative poverty negatively were various entrepreneurial activities while religion and household size had a positive impact. Socio-economic characteristics and entrepreneurial activities negatively affected absolute poverty while household size had a positive impact. It can be concluded that farmers still need more training and awareness on how to run an agricultural businesses as well as non-farm businesses for increased entrepreneurial income, improved welfare and limited likelihood of poverty and vulnerability. It was recommended that government to intervene in matters that arose from this study by providing more awareness, opportunities and training for people in the study area in order to reduce and prevent poverty.