The Impact of Good Governance on the Sustainability of Agricultural Cooperatives in KwaZulu-Natal

Evidence suggests that good governance is among the most critical factors for the sustainability of agricultural cooperatives. This study examines how good governance impacts the sustainability of agricultural cooperatives in KwaZulu-Natal (KZN), South Africa. Data for this study were collected usin...

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Published inAfrican Journal of Innovation and Entrepreneurship (AJIE) Vol. 3; no. 2; pp. 303 - 325
Main Authors Buthelezi, Sifiso, Taylor, Simon, Tefera, Orthodox
Format Journal Article
LanguageEnglish
Published London Adonis & Abbey Publishers Ltd 01.08.2024
Subjects
Access
Accountability
Agricultural cooperatives
Agriculture
Climate change
Communication
Cooperation
Cooperatives
Decision making
Economic development
Efficiency
Farmers
Financial management
Governance
Influence
Leadership
Participation
Rule of law
Sustainability
Sustainable development
Transparency
South Africa
KwaZulu-Natal Province South Africa
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Summary:Evidence suggests that good governance is among the most critical factors for the sustainability of agricultural cooperatives. This study examines how good governance impacts the sustainability of agricultural cooperatives in KwaZulu-Natal (KZN), South Africa. Data for this study were collected using a quantitative approach from 296 cooperative members across 179 cooperatives in 11 KZN province districts. Cluster sampling ensured adequate representation from all districts. The research applied the sustainability model to evaluate its influence within cooperative settings, considering various good governance models and theories. Analysis showed that poor financial management, lack of communication, weak leadership, and limited market access were significant challenges. These issues were often linked to inadequate governance practices. The findings revealed a pattern of sluggish and unchanging progress in the agricultural cooperative sector across the area. The findings of this study suggest that good governance is essential for the long-term success of agricultural cooperatives in KwaZulu-Natal. Enhancing financial management, communication, leadership, and market access through improved governance can significantly benefit these cooperatives. Therefore, efforts to improve governance practices are crucial for ensuring the sustainability and continued benefits of agricultural cooperatives to their members.
ISSN:2753-3131
2753-314X
DOI:10.31920/2753-314X/2024/v3n2a14