An assessment of small rural and micro-enterprises as pathways out of poverty. Insights from KwaZulu-Natal Province, South Africa

Onismo Muzah, Liboster Mwadzingeni

Rural poverty continues to pose a significant development challenge in South Africa, marked by pronounced inequality, persistent unemployment, and substantial dependence on social grants. The present study investigates whether household-level micro and small enterprises (MSEs) function as effective pathways out of poverty or primarily as coping mechanisms for survival in the Izingolweni area of KwaZulu-Natal. Employing a community-level cross-sectional design within a positivist paradigm, data were collected from 759 purposively selected household heads engaged in MSEs across sectors such as poultry, petty trade, and vending. Descriptive results show that 60.4% of participants receive government grants; however, formal savings (13.4%) and active product sales (13.9%) remain low. Multinomial logistic regression analysis demonstrates that education has a significant positive effect on participation in higher-potential sectors such as poultry and petty trading. The findings also reveal gender disparities, with male participants being four times more likely to engage in vending and showing significantly greater involvement of women in catering. Moreover, a prolonged investment duration was determined to enhance the probability of participation across nearly all enterprise categories. The results show that MSEs are important for survival, but they can't do much to help people get out of poverty because of structural problems like bad infrastructure and limited access to capital. The study concludes that focused business training and improved market access are essential to convert these survivalist enterprises into enduring catalysts for rural economic development.