Employment Generation by Co-operatives: Myth or Reality?

Stephen Mago; Amos Mazise; Costa Hofisi

Authors

Stephen Mago Great Zimbabwe University, P.O. Box 1235, Masvingo, Zimbabwe
Amos Mazise University of Fort Hare, P. Bag X1314, Alice, 5700, South Africa
Costa Hofisi North-West University, Faculty of Commerce & Administration, School of Management Sciences, Private Bag X2046, Mmabatho, 2735. South Africa

Abstract

This paper examines the role of small-scale producer cooperatives in reducing unemployment, providing income and food to rural people of Amathole in the Eastern Cape Province of South Africa. It is widely acclaimed that cooperatives have shown success in reducing unemployment. An examination was therefore necessary in the context of Amathole district, given rampant unemployment in this district. The paper relied on secondary data to establish the relationship between co-operatives and reduction of unemployment. Findings revealed that cooperatives employ worker-members and could not hire employees, managers and other skilled personnel. Income and food were other notable benefits. The paper recommends that the expansion and growth of cooperatives can be promoted through the provision of capital resources by the government. This will enhance cooperative employment creation efforts.

DOI: 10.5901/mjss.2013.v4n3p753