African Journal of Agricultural Economics and Rural Development ISSN 2375-0693 Vol. 10 (1), pp. 001-008, January, 2022. © International Scholars Journals

Full Length Research Paper

Assessment of the much-needed capacities for farming small, micro and medium enterprise (SMMEs) in South Africa

V. M. Mmbengwa1,2*, T. Ramukumba, J. A. Groenewald3, H. D. van Schalkwyk3, M. B. Gundidza4 and A. N. Maiwashe5

1School of Natural Resource Management, Nelson Mandela Metropolitan University (NMMU), George Campus, Republic of South Africa.

2University of the Free State, Bloemfontein, Republic of South Africa.

3Department of Agricultural Economics, University of the Free State, Bloemfontein, Republic of South Africa.

4School of Therapeutic Sciences, University of Witwatersrand, Johannesburg 1710, Republic of South Africa.

5Livestock Business Division, Agricultural Research Council, P/Bag X2, Irene, 0062, South Africa.

Accepted 21 November, 2021


The capacity of small, micro, and medium enterprises (SMMEs) plays a pivotal role in ensuring the viability and sustainability of the enterprise. Various types of capacities need to be identified and used to guide farming SMMEs’ planning, implementation and support in the after-care phase. The main objective of the study was to identify and evaluate essential capacities that are instrumental in ensuring the financial success of farming SMMEs in South Africa. Both qualitative and quantitative methods were used to determine the performance of farming SMMEs under consideration. The results revealed that market capacity is essential for financial returns of farming SMMEs in South Africa. Farming SMMEs should be linked to sustainable markets and they must actively participate in both supply and value chains in order to be profitable. Thus, farming SMMEs and their support service stakeholders should consider market access as crucial during pre-and post settlement support. It is essential therefore, that both public and private sectors prioritise market access in their supportive programmes.

Key words: Profitability, capacities, planning, sustainable, performance.