RESOURCE USE ENTITLEMENT, FINANCE AND ENTREPRENEURSHIP IN SUB-SAHARAN SMALLHOLDER AGRICULTURE

Abstract

The “poor but efficient” hypothesis of T.W. Schultz is by now generally accepted. Agricultural progress and entrepreneurship are however hampered by various bottlenecks. The absence of appropriate technology and related know-how is at least partly the result of misguided perceptions concerning appropriateness and a bias favouring large farmers among agriculturalists. Land tenure arrangements form another obstacle, as does lack of productive assets and factor markets. These considerations prevent entrepreneurial development. Tenure and size relationships are inseprable, with the latter largely a function of entrepreneurial ability.

Action to rectify these stumblingblocks will depend on sound financing, which in its turn influences and is influenced by entrepreneurial ability. The crucial factor is not property, but ownership and entitlement. Lease is often preferable to purchase. In land relationships, the land market, which implies at the least rental of use rights, is the crucial factor. Decisions involving financial structure are closely associated with both entrepreneurship and financial results. Credit should be evaluated within this framework. Loan tying can produce perverse behaviour and results, and subsidized interest is seldom beneficial. State lending institutions have a poor track record internationally, while the experience with credit cooperatives appears to be mixed. Small lender groups have proven themselves as appropriate intermediaries, since they foster selfhelp and entrepreneurship. The solution obviously does not lie in only one factor. Synergy exists between technology, tenure, infrastructure and finance in the fostering of entrepreneurship and agricultural progress.

Uittreksel

Die “arm maar doeltreffend” hipotese van T.W. Schultz word teen hierdie tyd algemeen aanvaar. Vooruitgang en entrepreneurskap in die landbou word egter deur verskeie knelpunte bemoeilik. Die afwesigheid van toepaslike tegnologie en venvante kundigheid is minstens gedeeltelik die resultaat van onbedagte persepsies ten opsigte van toepaslikheid en 'n sydigheid ten gunste van groot boere onder landboukundiges. Grondbesettingsreëlings is 'n verdere hindernis en so ook 'n tekort aan produktiewe bates en faktormarke. Hierdie oorwegings verhinder entrepreneuriale ontwikkehg. Besettings—en grootteverhoudings is onafskeidbaar van mekaar; laasgenoemde is grotendeels 'n funksie van entrepreneuriale vaardigheid.

Optrede om hierdie struikelblokke reg te stel sal afhang van gesonde finansiering wat op sy beurt entrepeneuriale vaardigheid beinvloed en daardeur beinvloed word. Die deurslaggewende faktor is nie eiendomsreg nie, maar wel gebruiksreg en aanspraak. Huur is dikwels verkieslik bo aankoop. In grondverhoudings is die grondmark wat minstens verhuring van gebruiksreg impliseer, die deurslaggewende faktor. Besluite aangaande finansiële struktuur het 'n noue verband met beide entrepreneurskap en finansiële resultate. Krediet behoort binne hierdie raamwerk geëvalueer te word. Gebonde lenings kan tot perverse optrede en resultate lei, en gesubsidieerde rente is selde voordelig. Staatsgebonde finansieringsinstellings het internasionaal 'n swak baanrekord terwyl ondervinding met kredietkoöperasies gemengd is. Klein verleningsgroepe het hulself as gepaste tussengangers bewys aangesien hulle selfhelp en entrepreneurskap bevorder. Die oplossing lê klaarblyklik nie in slegs een faktor nie. Daar bestaan sinergie tussen tegnologie, besetting, lnfrastruktuur en finansiering in die bevordering van entrepreneurskap en vooruitgang in die landbou.