The potential impact of collective ownership on the
South African Small-Scale Fishing Sector: A model for
the creation of sustained economic growth
A Conceptual Paper by Mark Botha1 (Extracted from his
PhD proposal)
1
Mark Botha is a lecturer at School of Business & Finance at UWC and is a PhD Candidate. His email address is
mabotha@uwc.ac.za
Abstract
The proposal has been triggered by the dearth of research on the South African small-scale
fisheries sector. Furthermore, studies on economic growth within this sector are not apparent.
In 2012 the South African government promulgated the small-scale fisheries policy to govern
this sector (RSA, 2012). The policy stipulates the need for collective ownership for fisheries
resources. This inquiry will develop a model for sustained economic growth within the smallscale fisheries sector through co-operative ownership paradigm. The study will examine
economic growth through communal ownership on the basis of three constructs, that is,
collective entrepreneurship, value chain development and the costs associated with collective
ownership, namely agency costs. Relevant literature in this regard is briefly reviewed. These
will be expanded on within the second chapter of the dissertation. Given the brief review on
literature, the research problem has been formulated; whether the prescriptive communal
ownership structure will enable or inhibit sustained economic growth within the South African
small-scale fisheries sector. In addressing the problem, this inquiry will be based on a case,
using mixed research methodology (MRM). MRM will provide a richly-textured understanding
and insight into the subject matter. I shall use focus group discussions (FGD) and interviews
with small-scale fishers, current fishing rights’ holders of small-scale fishing species, fishing
sector SMMEs and key informants of the small-scale fisheries sector. The scope of this study is
limited to economic growth for Fishing SMMEs in the context of collective ownership and value
chain development. More specifically, this study targets fishing SMMEs who clustered
themselves into collectively owned legal entities, such as, co-operatives. My research will
adhere to the ethical code of conduct of the University of Cape Town. Accordingly, all research
processes will not cause any harm to the interview and survey respondents. Moreover, I will
uphold the integrity of university and study. The findings of this PhD study will be presented to
the Department of Agricultural Forestry and Fisheries, National Planning Commission’s Ocean
Labs unit as well as fishing organizations to inform policy.
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Table of Contents
Abstract .......................................................................................................................................................... i
1.
Introduction .......................................................................................................................................... 1
1.1 Small Scale Fisheries (SSF) Policy – Collective Ownership .................................................................. 2
1.2 Fisheries Legislative Framework ......................................................................................................... 3
2.
Brief contextual analysis of relevant literature .................................................................................... 4
2.1 Collective entrepreneurship and economic growth ........................................................................... 4
2.2 The value chain in collectively owned enterprises ............................................................................. 5
2.3 Impact of agency cost and co-operative ownership ........................................................................... 6
3.
Research Problem ................................................................................................................................. 7
4.
Research Objectives .............................................................................................................................. 8
5.
Scope and limitation of the study ......................................................................................................... 9
6.
Value and Purpose of the study .......................................................................................................... 10
7.
Research design and methods ............................................................................................................ 10
7.1 Qualitative research using case study methodology ........................................................................ 11
7.1.1 Focus groups and interviews...................................................................................................... 12
7.1.2 Observation method .................................................................................................................. 13
7.1.3 Qualitative Data Analysis ........................................................................................................... 14
7.2 Quantitative Study using questionnaires as research instruments .................................................. 14
7.2.1 Sampling..................................................................................................................................... 14
7.2.2 Quantitative Data Analysis ......................................................................................................... 15
7.3 Target population (Both for qualitative and quantitative studies) ................................................... 15
8.
Ethical Considerations......................................................................................................................... 15
References .................................................................................................................................................. 17
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1. Introduction
Fishing is one of the oldest practices of economic activity and/or livelihood in the world. For
example, it dates back to biblical times as several bible scriptures make reference to fishing
albeit for subsistence purposes (Zephaniah 1:10, Nehemiah 3:3, Nehemiah 12:39, Nehemiah 13:
16, 2 Chronicles 33:14). Moreover, indicative from the marine molluscs found in coastal
communities within China, Japan, Peru, Brazil, Portugal, and Denmark during prehistoric times
it can be deduced that fish were among the early foods of mankind (Mannino & Thomas, 2003).
Within the South African context, the indigenous Khoi people practiced fishing as part of their
livelihood. The commercialization of fishing started with the hake fishery in 1899 with the first
commercial trawler, the Undine (Lees, 1969). Even though commercial fishing was practiced
since 1899, the regulatory framework vis-à-vis policies and legislation was promulgated in the
1920s (RSA, 2012). It could be argued that this was as a result of the economic significance of
fish as a resource. As such, the demand and supply patterns of certain fish species became
increasingly important within the economic landscape of South Africa and more specifically the
Western Cape (Sink, Wilkinson, Atkinson, Sims, Leslie & Attwood, 2012).
The commercial significance of fishing led to policies and legislation that structurally engineered
the development of the fishing industry. These created anomalies which are still evident. The
incongruities include the development of large sophisticated fishing companies at the expense
of Small Medium & Micro Enterprises (SMMEs) operating in the fishing sector (van Sittert,
Hauck & Sowman, 2006; Hersoug & Holm, 2000).
The disproportionate development within the fishing sector should be viewed within historical
context. It has been noted that a few large, predominantly white-owned companies owned and
controlled the industry (van Sittert, et al., 2006). Further, Hersoug and Holm (2000) contended
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that 70 per cent of the turnover derived from commercial fishing accrued to ten of the largest
fishing companies in South Africa. More recently, Isaacs (2006) noted that even though
government professes that SMMEs are imperative to attain wealth reallocation, economic
growth, poverty alleviation and employment creation; the necessary support mechanisms to
fishing SMMEs are not apparent as many fishers are excluded from formal right allocation
processes. Government-led interventionist strategies, such as, skills development and
infrastructural support mechanisms are necessary in addressing these disparities between large
established fishing companies and SMMEs (Isaacs, Hara & Raakjaer, 2007). This generalized
view of the fishing industry could differ, as situations within various subsectors could vary. For
example, by 2002, approximately 42 per cent of companies within the small pelagic – anchovy
sector were SMMEs (Nielsen & Hara, 2006).
The disparities between the few large, established and small-scale fishing enterprises; coupled
with the impoverished state of fishing communities in which fishing SMMEs are located within
led to the development of a policy for the advancement of the South African Small Scale
Fisheries sector. Through the SSF policy the South African Government aims to improve the
livelihood of small-scale fishers, SSF enterprises and fishing communities at large.
1.1 Small Scale Fisheries (SSF) Policy – Collective Ownership
The South African Government’s Department of Agriculture, Forestry and Fisheries (DAFF)
recognized the importance of the SMME fishing sector as a potential enabler for employment
creation, economic growth and the creation of wealth. This is illustrated by DAFF’s pro-poor
policy focus which is geared towards historically disadvantaged individuals operating within the
small-scale fishing sector (RSA, 2012). DAFF identified small-scale fishers as the most
impoverished. Through its small-scale policy DAFF aims to create a more equitable balance
between large and small-scale fishing enterprises by allocating a larger proportion of the total
allowable catch to SMMEs (RSA, 2012). DAFF will facilitate this process by awarding future long
term fishing rights to the SMME sector. In doing so, DAFF’s policy advances communal
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ownershipi of fishing rights, through community based legal entities (CBLEs) as the preferred
form of ownership (RSA, 2012). The policy outlines that fishing rights will be allocated to
designated fishing communities who in turn will apportion the rights and quantum to CBLEs. It
has been suggested that this form of ownership will result in more equitable rights allocation
and improve the economic well-being of marginalized fishers vis-a-vis growth in small-scale
fishing enterprises and the economic growth of fishing communities (Isaacs, 2014; Young,
2013). The small scale fisheries policy refers to Community Based Legal Entities (CBLEs) which
include co-operatives, trusts, non-profit companies and widely held companies. Nonetheless,
co-operatives have been viewed as the preferred choice of CBLE which often has been
advocated by government officials.
This is indicative of the number of co-operatives
established in fishing communities over the past two yearsii. Hence, the focus of the study is on
co-operatively owned businesses within the small-scale fisheries sector.
Fisheries co-operatives are not new in the global fishing sector. Co-operatives have been in
existence in nations, such as, Turkey, Mexico, Bangladesh, Alaska, Norway, New Zealand and
the USA for many years. Deacon (2012) reviewed the performance of fisheries co-operatives in,
developed and developing nations. He found inconclusive evidence on the performance of
fisheries co-operatives. Deacon (2012) noted that more research is needed on the fishery cooperatives as it is under-researched.
1.2 Fisheries Legislative Framework
Since 2008 the overarching law governing fishing has been the Marine Living Resources Act
(MLRA) (RSA, 2008)iii. The MLRA defined small-scale fishers as those who harvest for local
consumption on a restricted scale. No provision was made for subsistence fishers. In addition,
heed was not taken of the small-scale fisheries value chain. As such, no provision was made by
the MLRA for entrepreneurs who partook in pre- and post-harvesting processes. Traditionally
men were involved in hunting and harvesting for fish whilst women managed and operated the
pre-harvest (bait preparation) and post-harvesting (cleaning, processing & marketing)
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processes. The legislative environment preceding the small-scale fisheries policy effectively
excluded women from deriving an income vis-à-vis small scale fishing (RSA, 2012). More
pertinent, it inhibited the development of the small-scale fisheries value chain as well as the
economic growth. In order to achieve congruency with the small scale fisheries policy the
MLRA was revised. This resulted in the promulgation of the Marine Living Resources
Amendment Act (MLRAA) (RSA, 2014).
The implementation of the small-scale fisheries policy will shift the ownership of fishing rights
from individuals to groups. It has been suggested that the allocation of rights to CBLEs would
result in economic growth within the small-scale fishing sector. Even though, fisheries cooperatives have been studied in other countries the results are inconclusive and the field is
under-researched (Deacon, 2012).
Furthermore, the impact of fisheries co-operatives on
economic growth within the South Africa context has not been examined.
2. Brief contextual analysis of relevant literature
This section provides a contextual examination of the collective ownership on economic
growth. It draws on literature on collective entrepreneurship and economic growth, value chain
development as well as literature relating to agency cost associated with collective ownership.
2.1 Collective entrepreneurship and economic growth
Many policy analysts agree that the SSF policy explicitly impacts on the way small-scale fisheries
enterprises ought to conduct business (Isaacs, 2014; Young, 2013 Stern, 2013; Sowman, Sunde,
Raemaekers & Schultz, 2014). By default this will have an effect on entrepreneurial activity
within this sector. One of the leading scholars on entrepreneurship, Schumpeter, suggested
that the entrepreneurship role is often achieved through collective efforts (Schumpeter, 1928;
Schumpeter, 1949). More recently, Burress and Cook (2009) argued that team work, shared
learning, collective efficiency, collective reasoning and cooperative actions ought to grow
businesses more than an approach focusing on the individual entrepreneur. Furthermore, the
individual entrepreneur often does not have resources alone to develop the new products and
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industries (Van de Ven, 2005). This supports the need for collective action as stipulated within
the SSF policy in fostering economic growth within fishing communities.
South African fishing communities and small-scale fisheries enterprises are generally
inadequately resourced. Given the lack of economic resources within fishing communities there
is need for collective entrepreneurship for advancing economic growth. It should be noted that
fishing SMMEs traditionally operated as sole entrepreneurs who harvested their rights
independently. Since fishers often prefer to harvest individually they could offer some
resistance in working together – especially if forced. Moreover, coordinated activities amongst
fishers within fishing communities are not apparent. Evident of this poor coordination is the
lack of long-lasting fishing organization representative of fishers within defined communities
such as Ocean View. Community organizations are often short-lived and dishonored with
mistrust amongst members. Within this context, it could be suggested that the social construct
of fishing communities is not conducive for collective entrepreneurship. Furthermore, a need
exists to examine, whether a collective entrepreneurship model will lead to the sustained
economic growth in the South African small-scale fisheries sector given the social construct of
fishing communities.
2.2 The value chain in collectively owned enterprises
It could be suggested that the development of the value chain would create more employment
(albeit indirectly) and increase the income levels of local communities. This invariably will lead
to economic growth. Within the value chain individual activities are co-dependent on each
other (Shank & Govindarajan, 1992). It is widely accepted that in improving a firm’s profitability
it can either increase revenue and/or reduce its cost structure. The value chain model
endeavors to understand a firm’s overall cost position for devising and implementing an
optimal business strategy (Dess, Hennart & Hill, 1995). At times cost increases in one activity
lead to overall cost reduction within the chain (Shank & Govindarajan, 1992). This is consistent
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with Porter’s (1985) value chain model and the more recently suggested added-value chain
model by McPhee and Wheeler (2006).
Within the South African small-scale agricultural sector value chain development positively
impacted on economic growth (Ortmann & King, 2010). Similarly, within the New Zealand
aquaculture industry and Icelandic cod industry value chain development enhanced the
performance of firms and invariably led to the economic growth of those industries (Sankaran
& Mouly 2006; Margeirsson, Hrafnkelsson, Jonsson, Jensson & Arason, 2010). The conditions in
South African small-scale agriculture as well as within seafood sectors of New Zealand and
Iceland could be vastly different from the small-scale fisheries sector in South Africa. Hence,
any inferences on the effect of the value chain on the South African small-scale fisheries should
be treated with caution. Furthermore, no empirical study on the South African small-scale
fisheries sector’s value chain is evident. Given this a challenge arises. That is, whether the
development of the South African small-scale fisheries value chain through collectively owned
enterprises will generate or impede economic growth within this sector.
2.3 Impact of agency cost and co-operative ownership
Economic activities relate to the interchanging property rights (Alchian, 1965; Alchian &
Demsetz, 1973). Care needs to be applied on determining who the custodians of the property
rights (ie. fishing rights) ought to be, the individual fisher, or the community grouping/s. It
should be noted that in realizing efficient production, subsets of property rights are clustered
together and allocated to the most competent transacting parties (Kim & Mahoney, 2005). The
assignment of property rights to agents in most cases creates additional costs (Jensen &
Meckling, 1976).
The agency costs associated with cooperatives include the cost of incomplete contracts,
monitoring free-riders, aligning the interest of individual members with that of the co-operative
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and lack of understanding of the member’s roles and responsibilities within the co-operative
(Hart, 1988; Cook, 1995; Alchian & Demsetz, 1972; Van der Walt, 2005). However, the existence
of mutual trust amongst members within a collective ownership structure ought to lessen
transaction costs (Zaheer, McEvily & Perrone, 1998; Dyer & Singh, 1998; Ortmann & King,
2007). It could be suggested that within fishery cooperatives the degree of agency cost would
be significantly reduced in the presence of high levels of mutual trust amongst members.
Literature pertaining to mutual trust in Fishing SMMEs and fishing communities is non-existent.
Given this, a gap exists. That is, whether the existence mutual trust is evident in fishing SMMEs
and the fishing communities at large. Moreover, to examine the role of agency cost plays on the
performance of small-scale fisheries enterprises.
The contextual review of pertinent literature has been presented on three constructs, namely
collective entrepreneurship, value chain development and the agency theory. These constructs
should be viewed in the framework of collective ownership. This concern over a “framework
for collective ownership”, gives rise to the research problem of this thesis.
3. Research Problem
Since 1994 the SA government implemented various laws, strategies and initiatives to foster
growth and development in the SMME sector (DTI, 1995; DTI, 2012; RSA, 1996; RSA, 1996a;
RSA, 1996b; RSA, 2005; RSA, 2012a; RSA, 2013). This study makes special reference to the
Small-Scale Fisheries (SSF) policy which speaks to the form of business ownership for smallscale fisheries enterprises (RSA, 2012). That is, communal ownership of fishing rights within
defined fishing communities. Since the collective ownership model will be a prerequisite for
small-scale fishing rights, one may suggest that it is prescriptive. It has been suggested that
collective ownership will enable economic growth through efficiency gains when they are
arranged voluntarily by individual rights holders (Deacon, Parker & Costello, 2008). Therefore, a
disconnection exists between the prescriptive collective ownership model as stipulated by SSF
policy and the voluntary approach as suggested by Deacon, et al., 2008). Moreover, no
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empirical analysis is evident on the practical implications of the prescriptive communal
ownership provision of the SSF policy within the context of social and economic constructs of
the fishing communities and small-scale fishing enterprises. Furthermore, there are no clear
guidelines for a collective ownership model that will achieve sustained economic growth within
the South African small-scale fisheries sector. This led to the identification of the research
problem - whether the prescriptive communal ownership structure will enable or inhibit
sustained economic growth within the South African small-scale fisheries sector. Moreover, an
inquiry on collective ownership and economic growth needs to be postulated in the context of
collective entrepreneurship.
The research problem results in the following research question. What impact will collective
ownership of fisheries resources have on the business growthiv of small-scale fishing enterprises
and the sustained economic growthv of the small-scale fisheries sector?
4. Research Objectives
The identified research problem and question need to be address by exploring the following
research objectives. These are:
1. To develop a model informed through the research process that will lead to the
sustainable economic growth of the small-scale fisheries sector to inform policy. This
model will include a best practice framework for allocating fishing rights to communally
owned entities, such as, co-operatives, given the theoretical co-operative framework as
outlined by the Rochdale agreement in 1844 and the more recent model adaptations as
practiced in nations, such as, USA, Spain and Kenya. Moreover it will include an
examination of the trends (past, present and future) in the small-scale fishing industry,
its regional and global distribution patterns on international competitiveness,
accessibility, competing interest and sustainability on the small-scale fisheries sector as
well as the historical antecedents that drive the demand/supply patterns;
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2. To explore the practicality of collective entrepreneurship within small-scale fishing
enterprises given the social constructs of South African fishing communities;
3. To develop a strategy for development of South African small-scale fisheries value chain;
and
4. To investigate the impact of agency costs on cooperative ownership and collective
entrepreneurship within the South African small-scale fisheries sector.
5. Scope and limitation of the study
The scope of this study is limited to business and economic growth for Fishing SMMEs in the
context of collective ownership and value chain development. This study targets Fishing SMMEs
who clustered themselves into collectively owned legal entities, such as co-operatives.
The small-scale fisheries implementation plan identified 142 fishing communities in South
Africa (DAFF, 2013, p.23). Within the implementation plan DAFF identified six zones where comanagement structures will be set-up. The six zones comprising fishing communities are
located within the Western Cape and Northern Cape. DAFF argue that the traditional tribal
leadership structures are effective in managing the affairs of rural fishing communities within
the Eastern Cape and Kwazulu-Natal. Thus, explaining DAFF’s difference in approach to be used.
In congruence with DAFF’s method this study will target one small-scale fisheries enterprise in
each of the six zones for the case study inquiry. I shall target enterprises from urban, peri-urban
and rural communities. The guidelines for the sustained economic growth model could differ
across these communities. Hence, the need exists for the diverse selection of communities.
The targeted communities are Port Nolloth (zone A), Lambert’s Bay (zone B), Paternoster (zone
C), Ocean View (zone D), Kalk Bay (zone E) and Standford (zone F).
The focus group will comprise influential government officials and individuals from fishing
organizations which could dominate discussion. Influential governmental officials and
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individuals could dominate the focus group discussions and thus influence the research
findings. With a view to avoid such sampling bias, the focus group discussions will also include
discussions with individuals on a one-to-one basis.
6. Value and Purpose of the study
This study will add value toward informing policy on the sustainable economic growth for the
small-scale fishing industry in South Africa and globally. Furthermore, this inquiry will
investigate the impact of Government’s National legislation and resultant policies and
strategies in fostering economic growth and value creation for SMME fishing companies.
Moreover, from reviewing literature it is evident that research targeting economic value
creation of South African SMME fishing industry is scant. Most of the literature on economic
growth and value creation focuses on more established fishing industry and on other nations.
The impact of economic growth and value creation on South African rural fishing areas are
limited. In addition, there is a no scientifically developed sustained economic growth model for
the South African small-scale fisheries sector. This purpose of this study is to fill these lacunae.
7. Research design and methods
This study makes use of Mixed Research Methods (MRM). Initially this inquiry will use case
study research. Furthermore, the study will apply methodsvi, sourcesvii and perspective viii
triangulation to validate the research methods and findings.
Often a single method is unable to facilitate a deeper understanding of a phenomenon. Mixed
methods provide for a comprehensive interpretation of phenomena (Mingers, 2001). This
results in added meaning and fuller insight on the subject matter. Furthermore, the integration
of two or more methodological approaches could be complementary – as a weakness in one
method could be offset by strength in another method (Creswell & Plano Clark, 2011). It should
be noted that the goal of triangulation is not to have continuous consistencies across data
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sources or methods. Inconsistencies are not necessarily drawbacks, at times these could be
regarded as strengths. Often inconsistencies help to unearth greater meaning in the data
(Patton, 2002).
For these reasons this study will use multiple methods to corroborate the research findings.
Across disciplines there has been an increasing trend towards the mixed method approach
(Creswell & Garrett, 2008; Molina-Azorin, 2012). Furthermore, findings suggest that the impact
of articles who applied the mixed research methodology have been superior to studies using
only one method (Molina-Azorin, 2012). Sequential mixed method design will be applied
(Creswell & Plano Clark, 2011). Within the sequential design integration takes place through
chronological phases. The data obtained through the case study (qualitative inquiry) will inform
the quantitative research phase. The results from quantitative study will then be amalgamated
within the qualitative findings.
7.1 Qualitative research using case study methodology
Unlike quantitative studies which test hypotheses, qualitative research often draw themes from
the evidence presented. Based on the research problem and objectives the following broad
themes have been identified. These are:

Collective ownership impact on economic growth;

Collective entrepreneurship role in economic growth

Collective ownership and/or entrepreneurship impact on agency costs

Value chain development in the context of collective ownership

Collective ownership model for small-scale fisheries sector
Case study research will be used to investigate the themes and the study objectives. The
methodology is consistent with previous studies on collective entrepreneurship and/or
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ownership (cf. Branstad, 2008; Nor Hafizah, Salfarina, Intan Hashimah & Juliana, 2010) and
value chain studies (cf. Sankaran & Mouly, 2006; Sousa & Voss, 2007; Kaplinsky, 2004).
Ciao (2011a; 2011b) provides epistemological justification for using qualitative research, more
specifically, case study inquiries. He emphasizes that qualitative studies focus on informants’
view points and explores the organization holistically. Further, he notes that qualitative
research is based on an interpretivism paradigm grounded by originality and intersubjective
verification. In absence of originality the epistemological justification does not hold. Though,
originality could be in part or it could be in the development of a new model. In contrast with
quantitative studies where the justification for the method is found upfront; with qualitative
the justification is only confirmed subsequent to the research findings.
Ciao draws the analogy between case study research and solving a puzzle (Ciao, 2011b). A
puzzle comprises pieces of different sizes and shapes needed to create a complete image.
Similarly, when conducting case studies research it is important to capture all the data/pieces
and some evidence may be small but important to solve the bigger problem (Ciao, 2011b). Over
and above, the scholarly work of Ciao on case studies research, the rationale for using case
study methodology is amplified by scholars, such as, Collis & Hussey (2003), Eisenhardt (1989),
Ravenswood (2011) and Yin (2009). These scholars postulate that case study research allows
for a substantive understanding of the underlying issues by conducting an all-encompassing
investigation of phenomena comprising wide-ranging evidence, such as, artifacts, focus groups,
interviews, observations and reports (Eisenhardt, 1989; Ravenswood, 2011; Collis & Hussey,
2003; Yin, 2009).
7.1.1 Focus groups and interviews
I shall conduct focus group discussions (FGDs) with small-scale fishers, current fishing rights’
holders of small-scale fishing species, fishing sector SMMEs. Through FGDs research themes are
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speedily and comprehensively assessed and analyzed. It offers an explanation to participants’
action for the manner in which they understand and organize their practices. Through FGDs
participants jointly reflect on their experiences, viewpoint and understanding on the subject
matter (Johnson, Buehring, Cassell & Symon, 2007). In removing potential researcher bias an
independent facilitator (or moderator) will be appointment. This facilitator ought to be fluent in
Afrikaans (the dominant language within rural coastal communities of the Northern and
Western Cape) and English. Moreover, the FGDs will be conducted shortly after the context has
been set-out within the each of the research sites. In applying this approach the quality of the
focus group research is enhanced (O’hEocha, Wang & Conboy, 2012).
The FDGs will be preceded with unstructured interviews of key informants of the small-scale
fisheries sector. The key informant interviews will be invaluable – the informants would be
probed to reflect on their understanding of the stipulated co-operative model given their
background within small-scale fishing sector (Stokes & Bergin, 2006). The key informants
include officials of government departments such as the Fisheries Branch of DAFF, South
African Maritime Safety Authority’s Fisheries Centre for Fishing as well as National Fishing
Forum, Maritime Chamber of Transport Education & Training Authority, Fishing Organisations,
Community organisations within Fishing Communities, representatives from pressure groups.
7.1.2 Observation method
Over and above the planned focus group and one-on-one interview sessions, observation
techniques will be used. The observation method is frequently applied to behavioral sciences
research (Kothari, 2003). This method allows the researcher gather data in real situations
without directly engaging with the respondents (Wegner, 2000). The observation method will
be used to collect data pertaining to current individual rights holders’ willingness to become
part of collectively owned enterprises. The method will be used as a supplementary technique
to collect data.
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7.1.3 Qualitative Data Analysis
I shall use the grounded theory using the constant comparative method to analyze the data
(Johnson, et al., 2007; Strauss & Corbin, 2008). Through this method data are broken down into
discrete unit and coded into categories. This allows for the development of theoretical insights
leading to descriptive and explanatory categories. This process aides the development of
grounded theory. A framework for coding data through grounded theory analysis is provided by
Strauss and Corbin (2008). This is done with open, axial and selective coding. Through open
coding data are analyzed, examined, compared, conceptualized and categorized. Axial coding
finds connections between categories within a context and given set of consequences. Finally,
selective coding is process of choosing the core categories that needs further in-depth analysis.
This will be done by using the ATLAS.ti statistical package.
7.2 Quantitative Study using questionnaires as research instruments
A structured questionnaire instrument will be developed from the outcomes of the focus
groups and unstructured interviews. A sample of 300 fishers and/or existing individual fishing
right holders of species identified under the small-scale implementation plan from six
communities will be interviewed. Consistent with the MRM approach the results of the
quantitative study will be compared with the outcomes of the qualitative inquiry using the SPSS
statistical package.
7.2.1 Sampling
Purposeful sampling will be used to select the fishing communities and SMMEs included in the
study, government agencies and other key informants. Within the carefully chosen
communities judgmental and random sampling will be applied to obtain the actual sample of
cases. Judgmental sampling will be used to implore responses of 300 small-scale fishing
enterprises in the communities identified above. Judgmental sampling requires researchers to
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use their own judgment in selecting firms to survey. Firms will be selected to partake in this
study if they comply with DAFF’s qualifying criteria for small-scale fishing enterprises.
7.2.2 Quantitative Data Analysis
Congruent with the case (qualitative) study, the data from the quantitative study will be
analyzed using the Mathematica statistical package.
7.3 Target population (Both for qualitative and quantitative studies)
The population consists of owners and managers of Fishing SMMEs and cooperatives located
within Western Cape and Northern Cape provincial boundaries of South Africa. Small-scale
fishing enterprises on the following databases will be accessed:

Department of Trade and Industry; and

Department of Agriculture, Forestry and Fisheries
8. Ethical Considerations
I shall comply with the university ethical code of conduct especially in respect of informed
consent and confidentially. The research process will in no way cause any harm to the
respondents. Moreover, I will uphold the integrity of university and study.
Informed consent
All informants will be informed on the objective of the study. The approach to be followed will
be made known to them upfront as well as the expected duration of the interview and focus
group sessions. They will be allowed withdraw from the study at any time. The participants will
be advised that they voluntarily accept to be included in this study. All participants will be
required to complete and sign a consent form.
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Confidentiality
The informants name and data will not be made available to others unless they give their full
consent. They will be informed of this upfront. The participants in this study were informed
that their personal information would not be used and would remain completely anonymous.
Moreover, they will be told that the agreement forms would be kept in a safe location and
would be viewed only by the researcher.
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References
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organization. American Economic Review, 62, pp. 777-795.
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i
The policy outlines that fishing rights will be allocated to designated fishing communities who in turn will
apportion the rights and quantum to community based legal entities (CBLE), such as, co-operatives.
ii This is based on anecdotal interviews with leaders of fishing organizations.
iii Even though the MLRA is the overarching law governing fishing other laws impact on small-scale fishing
enterprises. These include the National Environmental Management: Integrated Coastal Management Act
of 2008; National Environmental Management Act of 1998; National Environmental Management:
Biodiversity Act of 2004; National Environmental Management: Protected Areas Act of 2003; Marketing of
Agricultural Products Act of 1996; Animals Protection Act of 1962; National Ports Authority Act of 2005;
Companies Act of 2008; Co-operatives Act of 2005 and Communal Property Association Act of1996.
iv Business growth is determined by growth in turnover and employment (Brijlal, Naicker & Peters, 2013;
Garnsey, Stam & Heffernan, 2006; Moreno & Casillas, 2007).
v Economic growth is measured on the small scale fishing sector’s contribution to Gross Domestic
Product (the country’s gross receipts of products and services) growth as well as employment growth
within the sector.
vi
Both qualitative & quantitative data will be examined to find complementary characteristics as of similar
phenomena and for greater insight
vii Examine consistency of data sources at difference times (look for existence of same phenomena over
different periods), different settings and informants with divergent viewpoints
viii The researcher will use different theories to interpret data
A Conceptual Paper
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