The effects of household industries on local economic development in South Africa

14 Dec 2020

The effects and role of household industries and skills development in alleviating poverty and leading to local economic growth remain an area of concern. Skills development, as one of the pillars of economic growth, has remained an unexplored area. The household industries driven by skills development play a major role in local economic development. The literature shows that most of the training that entrants receive stems from various institutions of learning, and that basic education is the first major vehicle for accessing knowledge and skills. The paper found that household industries and informal skills development create many job opportunities and equip locals with the skills that enable them to perform at their places of work. More importantly, their contribution to the national economy is positive and undebatable. Thus, the paper recommends that there is need for the government to strengthen the skills development policies in the household industries. This requires from government to establish coherent policies that enable a conducive environment for household industries. It also necessitates both scholars and policymakers to design skills development strategies for the diverse household industries in South Africa. The paper adopted a qualitative research approach that includes a literature review of the existing sources.