A management model for the expansion of the wholesale and retail cooperative sector in South Africa

Abstract

It is well recognized internationally that cooperatives can provide a wellspring for the development of economies. The factors enhancing the establishment, resilience, and sustainability of cooperatives in the wholesale and retail sector in South Africa are examined in this paper with the purpose of proposing a management model that could support the development and sustainability of cooperatives in this sector. The paper identifies four themes necessary to be in place for the successful establishment and sustainability of cooperatives. The research approach was qualitative, cross-sectional and descriptive. Three groups of respondents were sampled, two groups were interviewed telephonically, the third as a focus group. These included retail cooperative owners or managers and experts in the field of cooperatives in the retail sector. A questionnaire was developed around the four themes and served as the basis of a discussion guide for the focus group. The first theme, Legislation, appears to be soundly in place, while the remaining three themes: Management and infrastructural issues; Training and skills issues and Marketing issues are found to be wanting. In order to overcome these weaknesses, a management model is proposed which can facilitate the development of cooperatives in the shorter term as well as being able to capacitate the emerging cooperatives for sustainability in the longer term. Further research into possible structures for emerging retail cooperatives is suggested. JEL Codes: O10; Q59.