{"id":145554,"date":"2019-09-12T14:47:37","date_gmt":"2019-09-12T12:47:37","guid":{"rendered":"http:\/\/www.myza.co.za\/what-some-entrepreneurial-welfare-beneficiaries-do-to-improve-their-lives-the-conversation\/"},"modified":"2019-09-12T14:47:37","modified_gmt":"2019-09-12T12:47:37","slug":"what-some-entrepreneurial-welfare-beneficiaries-do-to-improve-their-lives-the-conversation","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/what-some-entrepreneurial-welfare-beneficiaries-do-to-improve-their-lives-the-conversation\/","title":{"rendered":"What some entrepreneurial welfare beneficiaries do to improve their lives | The Conversation"},"content":{"rendered":"

What some entrepreneurial welfare beneficiaries do to improve their lives<\/a>: <\/p>\n

Social grants provide an important cushion amid poverty in South Africa.<\/span> shutterstock<\/span><\/span><\/figcaption><\/figure>\n

South Africa distributes 17 million social grants every month. These include child, disability and older person grants. Versions of this large social protection system exist elsewhere in the Global South, in countries like Brazil, Ethiopia and China.<\/p>\n

Critics in South Africa, as in other countries with established welfare systems, sometimes argue that social grants are a drain on public resources. They suggest that this money should be invested elsewhere to help stimulate economic and employment growth. <\/p>\n

However, a convincing body of research shows that there are significant gains in food security, health, education and financial independence for those who receive cash transfers in many countries, including South Africa. <\/p>\n

A recent study conducted by the Centre for Social Development in Africa at the University of Johannesburg builds on this body of evidence.<\/p>\n

The research looked at how social grant beneficiaries in an urban area use their grants to generate income and improve their livelihoods amid high rates of poverty and unemployment. Social grant beneficiaries in the study were highly industrious and strategic. They established businesses and invested their grant money to grow their income to meet their households\u2019 basic needs. <\/p>\n

The research<\/h2>\n

According to the World Bank social grants account for on average 10% of beneficiaries\u2019 consumption needs in low-income countries; 21% in lower-middle and 37% in upper-middle income countries.<\/p>\n

Our research supports this, attesting to the fact that social grants are insufficient to sustain a family. How, then, do grant beneficiaries bridge the gap between their grants and their needs?<\/p>\n

Previous research shows that cash transfers in rural areas are used for productive capital, and for saving and borrowing. We wanted to get a picture of how people in urban areas used their grants.<\/p>\n

Using a narrative research approach, we conducted in-depth interviews with 17 grant beneficiaries. Our study specifically identified beneficiaries who were engaged in activities to improve their livelihoods. These represent 25% of grants recipients in Doornkop, Soweto. The community on the outskirts of Johannesburg has high levels of poverty, unemployment, grant recipients and informal income-generating activities.<\/p>\n

Each participant was interviewed three times between April and July 2017.<\/p>\n

The participants included a diverse cross-section of gender, age and type and number of grants received. Most participants had some secondary school education.<\/p>\n

What we found<\/h2>\n

Our research showed that many grant recipients worked hard to make their small grants go a long way. The participants we interviewed are diligent and self-disciplined women and men, both young and old, who care about their households and communities. They used their energies, skills and available resources to navigate the daily challenges of poverty and unemployment. <\/p>\n

The participants typically had no previous source of income and used the grant money in nuanced ways. Grants were employed as capital to start and sustain their businesses. They used their own social networks, their knowledge and skills, as well as their homes, to make a living. They also invested in future livelihoods by, for example, paying for a child\u2019s education. <\/p>\n

The participants engaged in 30 livelihood activities that can be clustered into:<\/p>\n