CHURCH AND SMALL, MEDIUM AND MICRO ENTERPRISES IN RURAL TSWAING IN THE NORTH WEST PROVINCE By Zodwa Regina Kutu BTh A ’thesis submitted in partial fulfilment for the award of a ’degree in (Theology and Development) in the School of Religion and Theology, University of KwaZulu-Natal, Pietermaritzburg Supervisor: Professor Steve de Gruchy Student No:-902416300 Date: 30 June 2009 1 DECLARATION The research described in this thesis was carried out in the School of Religion and Theology, University of KwaZulu – Natal, Pietermaritzburg, under the supervision of Prof. Steve de Gruchy. This thesis represents the original work of the author, and has not otherwise been submitted in any form for any degree or diploma at any university. Signature: .......................................................... Date: ................................................. As Supervisor, I agree to the submission of this thesis Professor Steve De Gruchy Signature: ...................................................... Date:-................................................. 2 ABSTRACT This thesis is a search for the relationship between the church and SMMEs in the Tswaing Municipality, in the North West Province. It concerns the role of the church in supporting SMMEs in such a way that they benefit the whole community instead of individuals, thus contributing towards the building of the economy in selected areas of rural Tswaing. The selected areas are Khunwana, Atamelang, Manamolela and Gannalaagte/Vrischgewaagd. It is written in the context of the church that has come to understand that ministry to the poor is never complete without dealing with wealth creation, and in recognition of the fact that the church can offer alternative economic values. Small business development and support in rural communities is seen to be a key factor in the building of the community economy. It is argued that rural economies have generally collapsed due to various factors. First the apartheid policies which displaced communities from areas where agricultural ventures were thriving to areas that were not suitable for subsistence farming. Second was rural urban migration which caused some Tswaing community members to go to cities to find work, leaving behind elderly people and youth who could no longer or were not willing to live off the land. Whilst in the cities such migrants were marginalized and remained jobless. Research findings indicate that the Tswaing community have assets and entitlements that could be harnessed by the church and other stakeholders like Government and big business, using Kretzmann and ’approach to community development; that of building the community from the inside out to enhance the economy. Four areas of involvement have been identified for the church (i) engaging the three tiers of government by advocacy for small businesses and ensuring implementation of policy; (ii) promotion of development and support for SMMEs and (iii) that the church sets up its own development project. 3 DEDICATION I dedicate this thesis to various groups and individuals, namely the SMME owners in Tswaing who assisted me with provision of information required for this work; the Methodist church of Southern Africa for affording me an opportunity to study. I hope that the church will find this work helpful as it strives to assist in the healing and transformation of the African continent, to which she belongs. This thesis is also dedicated to my late grandfather Ngqabe Henry Memela who taught me survival skills as a spectacular businessman; to my late grandmother maZibula Lena Bolitye who was my role model in living out the basic Christian doctrine of faith and works. 4 AKNOWLEDGEMENTS I am indebted to many people for the completion of this thesis: to Ricky Ngwenya, the statistical secretary of the Central District Synod and the Rev. Ken Carr respectively for their assistance with computer glitches; to the Bishop of the Queenstown District, the Rev. Mongameli President Noqayi for affording me space to work in a healthy environment towards the final stages of this work; to Mrs. Gretta Noncedo Makhwenkwe, the ’ Manyano President of the Queenstown District for her prayerful support; to Messrs. Fungile Dotwana, the Connexional Lay Representative in the Methodist Connexion; Mziwoxolo Richmond Krexe, Zamuxolo Mtongana, and Mazibuko Dukada for their encouragement; to Mrs. Lexie Ceza for the gift of a lap top so that I could type this work. My sincere gratitude also goes to Professor Steve de Gruchy, my Supervisor, for his pastoral and scholarly skills. I wish to thank him for his patience, understanding and sharp mind in his supervision, from the first time I presented an idea on this work to date. Without his encouragement this research would never have been completed. A big thank you also goes to all my former lecturers at the then University of Natal for assisting me to become. Special thanks go my mother, Nokazi Rodina, an intercessor; my sister Noluthando Mkoyana for her financial support during my studies; my niece Nomfundo; my children Unathi, Mpho, and Tebogo, as well as Zingisa, my grand – daughter, for their understanding at those times in which I was not available. It was a great sacrifice indeed! Lastly, but not the least, a word of gratitude goes to my husband and friend Sydney for encouraging me to work towards finishing this thesis during the innumerable trying and difficult times. Thank you all. 5 TABLE OF CONTENTS Declaration.....................................................................................................ii Abstract.....................................................................................................................................iii Dedication.................................................................................................................................iv Acknowledgements....................................................................................................................v Table of contents..................................................................................................................... vi Chapter 1: Introduction 1.1 General Introduction...........................................................................................................1 1.2 The research strategy...........................................................................................................4 1.2.1 The research problem.....................................................................................................4 1.2.2 The research question.....................................................................................................4 1.2.2.1 Sub-problems.................................................................................................................6 1.2.3 The hypothesis...............................................................................................................6 1.2.4 The objectives of the study...........................................................................................6 1.2.5 The research methodology/design.................................................................................6 1.2.6 The literature review......................................................................................................8 1.3 Definition of concepts.........................................................................................................8 1.3.1 Church............................................................................................................................8 1.3.2 Rural areas......................................................................................................................8 1.3.3 Adaptive strategies.........................................................................................................9 1.3.4 Sustainable livelihoods...................................................................................................9 1.3.5 Integrated Development Planning................................................................................10 1.3.6 Community economic development.............................................................................10 1.3.7 Activities, assets and entitlements................................................................................11 1.3.8 SMMEs: a definition....................................................................................................12 1.3.9 Small enterprises..........................................................................................................12 6 1.3.10 Medium enterprises......................................................................................................13 1.3.11 Micro enterprises..........................................................................................................13 1.3.12 Survivalist enterprises..................................................................................................13 1.3.13 Partnerships in development practice..........................................................................14 1.4 The organization of the study..........................................................................................14 Chapter 2: Church engagement in development 2.1 Introduction........................................................................................................................17 2.2 ’nature and mission...................................................................................................18 2.3 The