The impact of service delivery on the development of rural entrepreneurship in Kwamhlanga, Thembisile Hani Local Municipality, Mpumalanga Province.

Abstract

This study investigates the impact of service delivery on the development of rural entrepreneurship in KwaMhlanga, Thembisile Hani Local Municipality, Mpumalanga Province, South Africa. Rural entrepreneurship plays a crucial role in improving livelihoods and driving economic development. However, the success of rural businesses is heavily reliant on the availability and quality of basic services, such as water, electricity, and infrastructure. This research aimed to assess how service delivery challenges affect the sustainability and growth of rural enterprises in KwaMhlanga. The study adopted a qualitative research methodology, using a case study approach, to gather in-depth data from rural entrepreneurs in the area. Fifteen participants were purposively selected based on their dependence on local services for business operations. Semi-structured interviews were conducted to explore the entrepreneurs’ experiences regarding service delivery and its influence on their businesses. Data were analyzed using thematic analysis, which revealed both positive and negative effects of service delivery on entrepreneurship. Findings indicate inconsistent and inadequate service delivery hampers business development, increases operational costs, and reduces profitability. Rural entrepreneurs frequently face electricity outages, poor road infrastructure, and an unreliable water supply, which limit their ability to scale and remain competitive. Conversely, services enable innovation and diversification when available, contributing to business sustainability. The study’s findings were interpreted through Resource Dependency Theory, which emphasizes how the availability or lack of critical external resources—such as infrastructure and utilities—shapes organizational behavior, decision-making, and survival. The study concludes by recommending enhanced government support, better infrastructure maintenance, and policies prioritizing rural businesses' needs to ensure sustainable growth and development.