The Impacts of Small Business on Poverty Reduction in Eastern Cape Province, South Africa

Abstract

This study identifies the impacts of small business in poverty reduction. Small business plays a major role in rural livelihood. Even in the developed countries, small business contributes more to the economic growth. The study was carried out in Alice, in Eastern Cape provide of South Africa, where people seems to live under the pressure of poverty. Structured questionnaires were administered on twenty-five community members who operate small business. The result shows that small business makes important impacts on livelihoods and thereby serves as an eyes opener for those who view small business as merely a survival strategy. Small business operators have plotted their way out of the bondage of poverty even though it has been though due to many challenges. Conclusively, small businesses have helped to improve the standard of living. If better platform is given, their performance will be better than the present.

DOI: 10.5901/mjss.2014.v5n15p156