Effectiveness of Non-Profit Organisations Operating in Enabling Environment That Alleviate Unemployment in Buffalo City Metropolitan

Abstract

In recent years Non-profit Organisations have been incorporated into development policies by the Governments and this has been informed by the Millennium Development Goals. Amongst the requirements for the achievement of the Millennium Development Goals is various stakeholders’ voices that there is a need to create an enabling environment for Non-profit organisations. The paper aimed to establish the effectiveness of Non-profit organisations operating in enabling environment that Alleviate Unemployment in Buffalo City Metropolitan. The research methodology employed was the qualitative research design and data was collected using a workshop and interviews as the qualitative data collection methods. The data was analyzed by employing a thematic data analysis system. The findings showed that, the environment in which Non-profit organisations operate was not enabling or conducive to creating jobs that could alleviate unemployment in the Buffalo City Metropolitan.

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Henna, E. and Mdiniso, J. (2023) Effectiveness of Non-Profit Organisations Operating in Enabling Environment That Alleviate Unemployment in Buffalo City Metropolitan. Open Journal of Social Sciences, 11, 92-106. doi: 10.4236/jss.2023.1112009.

1. Introduction

The paper aimed to establish if Non-profit Organisations operate in an environment that enables alleviating unemployment in the Eastern Cape Province, South Africa. It was a case study of the Buffalo City Metropolitan Municipality between the periods of 1997 to 2017. With the dawn of the new democracy in 1994, the relationship between the government and these voluntary organisations took a different direction when the new government’s Department of Social Development saw the need to formalize and regulate the NPO sector through its NPO directorate and the formulation of the NPO Act No. 71 of 1997. I noted that the NPO Act refers to the Department of Welfare in some parts, but this department no longer exists as it was changed and renamed the Department of Social Development in 1996 (DSD, 2015) .

Despite this legislation, however, it seems that there is no clear plan, mechanism, strategy, or policy by the DSD on how NPOs can be used effectively as a tool to create jobs, and the National Development Plan is not clear on how NPOs can be used to achieve its goals by 2030 (DSD, 2015) . The background information regarding the research problem emanated from the researcher’s observation of the persistent problem of the high unemployment rate (narrow definition) in South Africa, with a particular focus on the Eastern Cape Province.

The researcher observed that South Africa had an unemployment rate of twenty-nine (29) percent in 2016, with a very slight improvement to twenty-seven (27) percent in 2018 (Statistics South Africa (Stats-SA), 2018) , and although the unemployment rate had dropped slightly over this period, it was still very high. The researcher also observed that the registration and reporting of NPOs had increased substantially since their inception in 1997, evidenced by the increasing demand for the registration of NPOs (DSD, 2015) . It was against this background that the researcher identified that a similar trend existed in the rate of unemployment and the number of NPOs registered over a period.

However, the researcher does not assume that there was a relationship between the two variables. Subsequently the DSD (2021) reported during their webinar held in early 2021 that there had been a significant increase from one hundred eighty-eight thousand five hundred forty-eight (188,548) NPOs registered during 2018 to two hundred thirty-three thousand one hundred eighty (233,180) NPOs registered by the end of 2020. Thus the aim of the study was to evaluating NPOs in alleviating unemployment in Eastern Cape Province.

2. Literature Review

In agreement with Creswell (2014) , the literature that was reviewed helped me to frame the problem. The literature that was reviewed for this study focused on two aspects: those of the NPOs and the high unemployment rate. As explained above in the introduction, Non-profit organisations are mostly described as voluntary community organisations and they include the likes of NGOs, CBOs, as well as Civil Rights Organisations (CROs) (Monyane, 2014) . Against this background and for the benefit of this study, all of the above-mentioned organisations have been referred to interchangeably in this study. Non-profit Organisations derive their mandate from the Non-profit Organisations Act, No. 71 of 1997 and has the following objectives.

To create an environment in which NPOs can flourish with administrative and regulatory framework within which NPOs can conduct their affairs and encourage NPOs to maintain an adequate standard of governance with transparency and accountability as well as improve on the standards. To create an environment in which the public may have access to information concerning registered NPOs and promote a spirit of co-operation and shared responsibility within and amongst government, donors, and other interested persons in their dealings with NPOs (DSD, 2015) .

NPOs were formally established in 1997 by the Department of Social Development (DSD, 2015) and have since served their communities immensely. I was, however, able to trace the existence of NPOs back as far as pre-1994 when they played a very critical role in the struggle against apartheid, which was a system used by the Nationalist Party (NP) to discriminate against the Black majority in favor of White South Africans. Even post-apartheid, NPOs are still key in the delivery of community-based social services in terms of the Reconstruction and Development Program (RDP) (African National Congress, 1996) .

The Extended Public Works Programme (EPWP) in South Africa which was introduced in 2004 and is presently being executed, is an intentional endeavor by public sector organisations to use money spent on products and services to generate employment chances for jobless people. Under the Ministerial Conditions of Employment for the EPWP or learnership employment conditions, workers are employed temporarily or permanently by the government, contractors, or other non-governmental organisations on behalf of EPWP projects (EPWP, 2009).

The Eastern Cape Province became the leading Province in terms of employment opportunities created versus expectations for the 2018/19 financial year, having created one hundred fourteen thousand six hundred six (114,606) work opportunities against a target of one hundred fifteen thousand six hundred (115,600) work possibilities, or 99.2 percent. The Eastern Cape was expected to contribute five hundred two thousand one hundred eighty-six (502,186) work opportunities towards the national effort of six (6) million work opportunities under the previous Medium Term Strategic Framework (MTSF), which ended in March 2019 (EPWP (2018/19)).

Furthermore, during the 2020-21 fiscal year, nine hundred thirty-eight thousand six hundred eighty-eight (938,688) new job opportunities were made possible by the Expanded Public Works Programme (EPWP). According to the agency, there were three hundred thousand four hundred ninety-four (300,494) work opportunities in the EPWP non-state sector during that time, more than any other industry.

Infrastructure came in second with two hundred sixty-six thousand one hundred eighty-two (266,182) work opportunities. There were two hundred seven thousand seven hundred ninety (207,790) and one hundred sixty-four thousand two hundred twenty-two (164,222) job opportunities produced by the social, environment, and culture sectors, respectively. The department also reported that the Eastern Cape and KwaZulu-Natal were in the forefront of the creation of EPWP possibilities, generating two hundred nineteen thousand seven hundred six (219,706) and two hundred nineteen thousand nine hundred forty-seven (219,947), respectively (EPWP, 2020/21).

2.1. Defining Non-Profit Organisations (NPOs)

Anheier (2017) states that people in different countries and settings understand the NPO sector differently, hence it can be defined in various ways. However, there is a general understanding of a simple definition of NPOs. According to the Department of Social Development (2018) , the term Non-Profit Organisations is new in South Africa because it did not exist until after the 1994 general election. Prior to that, they were referred to as Non-Government Organisations (NGOs). It was only in 1997 with the promulgation of the NPOs Act No. 71 of 1997 (RSA, 1997) that all of these community organisations began being referred to as Non-profit Organisations (NPOs).

Choto, Iwu & Tengeh (2020) defines NPOs as private voluntary community structures formed by individuals or a group of people in a community and they include Non-Governmental Organisations (NGOs), Community-Based Organisations (CBOs), Civil Society Organisations (CSOs), Independent Cooperatives, Women’s Groups, and Pastoral Associations. It must not be forgotten that the establishment of the NPO sector in South Africa is often regarded as different and distinct because its history and operational processes were closely informed by the country’s socio-political history, where segregation was the order of the apartheid ideology (DSD, 2018) .

According to the Department of Social Development (2018: p. 2) in terms of the South African Non-profit Organisations Act (Act No. 71 of 1997), an NPO is “a trust, company or other association of persons established for a public purpose and of which its income and property are not distributable to its members or office bearers with the exception of reasonable compensation for services rendered”. Few Acts are related to the NPO Act No. 71 (RSA, 1997) that must be observed by those involved with NPOs as required Law of the Republic and are a summary is provided below (DSD, 2018) .

2.2. NPOs and the Legislative Framework

According to Choto, Iwu & Tengeh (2020) , the South African NPO sector is self-regulatory, but it has to operate in accordance with the NPO Act No. 71 of 1997 (RSA, 1997), which is administered by the Department of Social Development. The Directorate of NPOs published Codes of Good Governance in 1997 as part of its legislative mandate for NPOs to facilitate self-regulation aimed at improving governance within the NPO Sector. These Codes go hand-in-hand with this Act. The Public Finance Management Act No. 29 of 1999 (Department of Finance and Treasury, 1999) which governs the management of public funds, is closely linked to the NPO Act.

Section 38(j) of the Public Finance Management Act: Requires the Accounting Officer to ensure that: before transferring any funds (other than grants in terms of the annual Division of Revenue Act or to a constitutional institution) to an entity within or outside government, must obtain a written assurance from the entity that that entity implements effective, efficient and transparent financial management and internal control systems, or, if such written assurance is not or cannot be given, render the transfer of the funds subject to conditions and remedial measures requiring the entity to establish and implement effective, efficient and transparent financial management and internal control systems ( Department of Finance and Treasury, 1999 : Section 38(j):36).This means that NPO practitioners must consider this Act when dealing with public funds received from funders and donors, especially the government and the Department of Social Development (Ozili, 2020) . Dhonju et al. (2021) adds that the Income Tax Act No. 58 of 1962, Section 30 states:

The State recognizes that non-profit organisations play a significant role in society as they undertake a shared responsibility for the social and development needs of the country thereby relieving the financial burden, which otherwise falls on the State. Tax benefits are designed to assist non-profit organisations by augmenting their financial resources and providing them with an enabling environment in which to achieve their objectives. This means that South African NPOs are exempted from paying tax due to the nature of their work, but they must abide by the Public Finance Management Act (Department of Finance and Treasury, 1999) .

2.2.1. Registration Requirements

According to the South African Department of Social Development (2018) , their responsibility is the enforcement and implementation of the NPOs Act (RSA, 1997), as they are the custodians of this Act. With satellite offices around the country in all of the provinces, the DSD’s important activities include the registration of NPOs and providing access to information regarding the establishment and registration of NPOs. To register as an NPO, the founder must be a South African citizen, reside in South Africa, have a constitution and an executive forum for the NPO, and provide their services free of charge.

2.2.2. NPOs in the Eastern Cape Province

In Sections 1 and 5 of the NPO Act (RSA, 1997), the Department of Social Development stipulates that an NPO Directorate be formed to deal with the regulatory matters of all non-profit organisations, and one of the Directorate’s main functions is to register NPOs and maintain a register of them. According to the Department of Social Development (DSD, 2018) , the Eastern Cape had two thousand six hundred and eighty-seven (2687) registered NPOs in 2008, compared to three thousand one hundred and eighty-seven (3187) in 2018, indicating an increase of more than fifty (50) percent, indicating a higher demand for NPOs in the province.

The wealth distribution with the larger economic hubs was reflected in the 2018 Business in South Africa’s Hand Book, with Gauteng, the Western Cape, and KwaZulu-Natal receiving the largest share of NPO capital, according to Chatterjee, Czajka & Gethin (2020) . Over the same time span, the Eastern Cape, Northern Cape, and Limpopo were on the list to obtain support. Rural projects accounted for thirty-nine (39) percent of total investment, while urban and peri-urban projects accounted for fifty-seven (57) percent. According to the latest DSD (2020) statistics, the total number of South African NPOs reported at the end of 2020 was two hundred and thirty-three thousand one hundred eighty-two hundred and thirty-three thousand one hundred eighty (233,180); with one hundred and forty-nine thousand seven hundred and fifty-seven (149,757) non-compliant NPOs and fifty-four thousand four hundred and ninety-three fifty-four thousand four hundred and ninety-three (54,493) NPOs due to submit.

However, there were one hundred and eighty-eight thousand five hundred and forty-eight (188,548) registered NPOs in 2018; with compliance by one hundred and fifty-six thousand three hundred and thirteen one hundred and fifty-six thousand three hundred and thirteen (156,313) NPOs, non-compliance by thirty-two thousand two hundred and thirty-five (32,235), and a further eighty-three thousand one hundred and twenty-six (83,126) NPOs were non-compliant due to reporting. These figures indicated an upward trend in the number of NPOs registered from 2018 to 2020 (DSD, 2018) .

The Mayor (2018) of the Buffalo City Metropolitan Municipality announced in his State of the City Address that the city’s development trajectory is anchored on the Metro Growth and Development Strategy’s (MGDS) pillars, with special attention paid to the COVID-19 pandemic and the city’s economic recovery plan. Furthermore, the Buffalo City Metropolitan Municipality (2021) reflects that the city is very adamant that its foundations are stronger, despite the virus’s incapacitating impact on the economy, the health system, and the loss of life it has caused among the citizens of the city.

2.2.3. Unemployment in South Africa

According to Statistics South Africa (Stats-SA) (2021) , there are two definitions of what constitutes unemployment.

2.2.4. Official Definition of Unemployment

According to the official definition, unemployed people are individuals between the ages of fifteen (15) and sixty-four (64) who: 1) were not employed during the reference week; and 2) were not employed during the preceding week. In the four weeks before the survey interview, you were actively looking for a job or trying to start a business; 3). Those who are available for work, that is, those who can begin working or starting a business during the reference week; and those who 4). Have not actively sought employment in the last four weeks, but have a position or business that will begin at a specific time in the future and are available (Stats-SA, 2021) .

2.2.5. Expanded Definition of Unemployment

Unemployed persons, according to the expanded definition, are those between the ages of 15 and 64 who: 1) were not employed during the reference week; 2) were available to work but did not look for work, either because they were discouraged from looking for work (see definition of discouraged work-seeker) or for reasons other than discouragement (see definition of discouraged work-seeker) (Stats-SA, 2021) .

Also to be taken into account is the fact that despite the government and NPOs’ efforts, the deep income and wealth disparities in South African society continue as a legacy of colonialism and apartheid’s socio-economic order, decades after the end of apartheid in 1994 (Treiman, 2007) . Gwedla & Shackleton (2021) report that privileges and unfair treatment persist to this day, with a limited number of individuals owning large sums of money while 45 percent of the population lives in poverty. South Africa’s unemployment rate rose to 31 percent in the third quarter of 2020, up from 23 percent in the previous quarter.

2.2.6. Unemployment in the Eastern Cape

South Africa’s unemployment rate rose by approximately one (1) percentage points from the fourth quarter of 2019 to approximately thirty (30) percent in the first quarter of 2020, according to the Eastern Cape Socio-Economic Consultative Council (2020), with unemployment rates increasing in five (5) of the country’s nine (9) provinces.

Unemployment has risen above the national average of thirty (30) percent, and in the Eastern Cape was forty-one (41) percent, the Free State thirty-nine (39) percent, Mpumalanga thirty-four (34) percent, the North West thirty-three (33) percent, and Gauteng thirty-one (31) percent, with the Eastern Cape having the highest rate of unemployment in the country ( Stats-SA, 2021) .

2.2.7. Unemployment in the Buffalo City Metropolitan Municipality

With a population of approximately six million nine hundred and ninety-six thousand nine hundred and seventy-six (6,996,976) inhabitants, the Eastern Cape province has the third-largest population among South Africa’s provinces, according to the Eastern Cape Socio-Economic Consultative Council-(ECSECC) (ECSECC, 2020) . The Nelson Mandela Bay Metropolitan (NMB) is one of the province’s two metros, with the legislature located in Bisho; one of the Buffalo City Metropolitan Municipality’s towns. Volkswagen in Uitenhage,

Ford in Port Elizabeth, and Daimler Chrysler in East London are among the few large companies in both metros that employ both professional and semi-skilled staff. The Buffalo City Metropolitan Municipality (2021) further reports that in 2018 it employed two hundred and fifty-four thousand (254,000) people, accounting for seventeen (17) percent of the province’s total employment of one hundred and forty-seven (1.47) million people and contributing approximately two (2) percent of South Africa’s total employment of one hundred and sixty-three sixteen million three hundred thousand (16.3) million people. Employment in the BCM municipality grew at an annual rate of approximately one (1) percent on average from 2008 to 2018.

According to the Buffalo City Metropolitan Municipality (2020/2021) the municipality, as one of the Eastern Cape Metros, had a 35 percent unemployment rate in 2019, which rose to a record-breaking forty (40) percent unemployment rate in 2020, leading the list of the province’s unemployment rate. By the beginning of 2021, the Buffalo City Metropolitan Municipality had overtaken all the municipalities in the region by forty-seven (47) percent unemployment rate, surpassing the Eastern Cape Province’s unemployment rate.

2.3. Summary

The literature review discussed issues around NPOs including their definition, NPO’s legislation and registration requirement, the status of NPOs in the Eastern Cape Province, the definition of official and expanded unemployment, unemployment in South Africa, the Eastern Cape, and in the Buffalo City Municipality Metropolitan.

3. Research Methodology and Design

A research is carried out using three research methods, namely qualitative, quantitative or a combination of both and the researcher has chosen the qualitative research method. Patel & Patel (2019) find that qualitative strategies are generally more flexible allow for greater spontaneity and adaptation of the interaction between the researcher and the participants’ contributions, and are used primarily by exploring and understanding the importance of individuals or persons.

While quantitative research is mainly concerned with the measurement of phenomenon in terms of quantity. Many times a debate is conducted between qualitative and quantitative terms. An example of quantitative research is carrying out senses for collecting population, social, and economic statistics of a particular area. They are subjected to statistical analysis.

It relies mainly on primary data like the survey method and questionnaire method (Patel et al., 2019). Therefore, according to Maxwell (2016) , mixed-methods design offers a number of benefits to approaching complex research issues as it integrates philosophical frameworks of both post-positivism and interpretivism (Molina-Azorin & Fetters, 2016) interweaving qualitative and quantitative data in such a way that research issues are meaningfully explained. It also offers a logical ground, methodological flexibility, and an in-depth understanding of smaller cases.

The researcher chose a non-probability sampling procedure where the participants or the units to be analysed were deliberately selected from the population of DSD database. Purposive or judgmental sampling was chosen because it is a strategy in which particular settings persons or events are selected deliberately in order to provide important information that cannot be obtained from other choices. The NPO Sectors in the Buffalo City Metropolitan Municipality that were selected are Development and Housing; Culture and Recreation; Education and Research and Social Services. Data Collection was carried out by the use of qualitative workshop and qualitative interviews were chosen as key strategies to generate the qualitative data required for this study. Ørngreen and Levinsen (2017) have explored the use of a workshop as a qualitative data collection tool with its methodological framework, and a workshop is “where things are made or repaired”.

This study’s workshop was conducted with nine participants. In accordance with Mikėnė et al. (2013) , the initial phase of informant selection was carried out prior to the qualitative interviews taking place, and the recruitment process for the participants was carried out via phone calls and emails. One interview was conducted via telephone via email and the last three interviews were conducted via WhatsApp messages totaling five participants. The last interview was conducted via WhatsApp messages and could thus also not have a time frame attached to it. All of the data was kept safe in multiple storage sites until it was analysed using a thematic analysis method. Cho, Lester & Lochmiller (2020: p. 97) state that a thematic analysis perhaps can be explained as “a general concept that sometimes describes very different approaches to identifying patterns in qualitative data sets”. Due to its general and flexible nature, thematic analysis is widely used in various fields, including psychology. The researcher decided to use a thematic analysis method to analyze the data.

4. Results and Discussions

Demographic Variables of the Study

The researcher has provided the demographic picture of the participants below to provide a brief description of their characteristics as these could have a possible influence on the study. The information was gathered from the register, which was taken at the workshop and from the participants who were interviewed and not part of the workshop: In terms of gender, the participants comprised seven female participants and seven males, making it an equal representation of genders with fifty percent females and fifty percent males. The number of NPO participants who participated in both the workshop and the interviews totaled fourteen (14).

Focusing on the ages the participants, their ages ranged from twenty-six (26) to fifty-six (56) years of age. The majority of the participants twelve (12) were from the age range of twenty-five (25)-thirty-five (35) years. The mean age for the sampled participants was forty-nine (49) years. In terms of employment status of the participants; seven were self-employed, three (3) of them were unemployed; three (3) worked as volunteers; and one (1) was employed. The NPOs’ lifespans ranged from one (1) year to twelve (12) years of existence.

Focusing on the participants, there were nine (9) Blacks who took part in the workshop and five (5) Blacks who took part in the interviews, thus there were fourteen (14) Black participants. The education levels of the participants varied, but the majority five (5) had a Higher Diploma; four (4) had a Higher Certificate; two (2) had a Secondary school level education and one (1) had a Primary school level education. Table 1 below depicts the demographic characteristics of the participant as reflected on both the workshop and the interviews registers.

Table 1. The Demographic characteristics of the participants.

5. Discussion of the Themes from the Data

The findings of the study are grouped into themes generated from the field study that was conducted and carried out by the researcher with the NPOs. The analysis of the data from the workshop will be presented first as part one, followed by the analysis and presentation of the data obtained from the interviews as part two. Table 2 below depicts the theme and sub-themes generated from the objective and sub-themes generated from the responses.

5.1. Part One: Analysis of Data from the Workshop

Theme: Enabling Environment

Question

Do non-profit organisations operate effectively in an environment that enables the alleviation of unemployment in Buffalo City Metropolitan in Eastern Cape Province?

Responses

Sub-theme 5.1.1: Institutional factors

The Majority of the NPOs’ participants in the workshop responded that the district offices of the DSD, as institutions, were not providing an enabling environment for the NPOs to operate in the Buffalo City Metropolitan Municipality. They specifically mentioned the physical offices of the DSD in Bisho, Zwelitsha, King Williams Town, and Mdantsane as not being supportive at a district level. This kind of environment in this case was an institutional factor as the DSD was the custodian of the NOP Act. One participant stated that:

The problem is that we dont have support from the people in power. The

Table 2. Theme and sub-themes of the study.

problem is with the officials who seem not to know their jobs. Aba bantu abanabo ubuntu (IsiXhosa) (these people do not have humanity) “In order to have access to the application form, you must have a USB. You will not get the form if you think you are going to get a printed copy. Not sonke (all) abantu (people) have access to technology (N5, & N1, participants, 7 November 2019)”.

The findings of the study thus showed that the DSD offices were not accessible to the community they served. This finding concurred with the report by the Parliament Portfolio Committee on Social Development, which also found that DSD offices were not accessible to the NPOs of the Buffalo City Metropolitan (DSD report, 2018) .

Sub-theme 5.1.2: Registration factors

The experience of some of the participants in the workshop seemed to have experienced problems with the registration process itself, as one participant indicated:

It took us three years to be registered. Since 2014Were sent from one office in Zwelitsha, they send to King Williams town. We were likely to register in 2016.These offices are not helpful, I can say that the environment where we operate from is not conducive (N8 & N4, participant 7 November 2019)”.

The findings of the study thus showed that the even if DSD offices were accessible to the community they served but getting forms and other documents to register their organisations was a problem for NPOs in the Buffalo City Metropolitan (DSD, 2018) .

Sub-theme 5.1.3: Infrastructure factors

Other NPOs that participated in the workshop felt that the DSD was so non-functional that it was non-existent. Some said that it was even difficult to get governmental support in terms of buildings from which they could operate.

I know DSD; I have been working with them for a very long time. We work in the rural areas on different projects. However, since we started operating its been difficult. Asinandawo (we have no place)”.It seems that we have a different problem. Our problem at the Mdantsane Arts Centre is safety; even if you have the equipment, storage becomes an issue (N6 & N5, participant, 7 November 2019)”.

The findings found that NPOs were still faced with problems regarding registration, even though the DSD had provincial offices as well as district offices in and around the Buffalo City Metropolitan (DSD report, 2018) . In summary, it was clear from this theme that the non-profit organisations that participated in the workshop of the Buffalo City Metropolitan Municipality did not operate in an environment that enabled them to create jobs (DSD, 2018) .

5.2. Part Two: Analysis of Data from the Interviews

There were five interviewees: two participants were selected from the workshop while the other three participants were referrals. There were eight potential participants invited but only five people participated in the interviews.

5.2.1. Question

Do non-profit organisations operate effectively in an environment that enables the alleviation of unemployment in Buffalo City Metropolitan in Eastern Cape Province?

5.2.2. Responses

It was common in the Eastern Cape, or indeed any township, as shown by most participants that many NPO started out by operating from garages or churches.

We are operating from the church. We do not have a site but we are hoping that we will get help from the DSD.NPOs dont operate like co-operatives and the environment is not conducive to creating jobs (N13 & N14, participants, 7 September 2020)”.

The findings found that NPOs did not operate in an environment conducive to job creation in order to alleviate unemployment in the Buffalo City Metropolitan Municipality. In summary, it was clear from this theme that the non-profit organisations did not operate in an environment that enabled them to create jobs (DSD, 2018) .

5.3. Summary of Results

The participants in the study responded that as institutions, the district offices of the DSD were not providing an enabling environment in which NPOs in the Buffalo City Metropolitan Municipality could operate; they specifically mentioned the physical offices of the DSD in Bisho, Zwelitsha, King Williams Town and Mdantsane as not being supportive at the district level. This kind of environment in this case is an institutional factor as the DSD is the custodian of the NPO Act No. 71, 1997. The participants asserted that the DSD offices were not helpful. They sent them from pillar to post and that involved money for transport, which they did not have. One participant even concluded that the environment where the NPOs operated was not conducive to them operating effectively. Seemingly, the participants felt that even when they did manage to get access to the DSD offices, they encountered different problems with regard to registration, such as being told that they needed a USB stick to get the documents required for the registration process. They found it very difficult to operate as they had no official place of their own from which to operate and instead used the local church. The DSD had not even provided them with an unused government building to use, which they felt it could have done. When NPOs did not have the proper infrastructure and space to operate from it took longer for the NPOs to achieve their goals in the community. They needed infrastructure like offices, office equipment, filing cabinets, computers, and so on for their environment to be viewed as an enabling one.

6. Conclusion and Recommendations

Based on the review and the outcome of the study on establishing if non-profit organizations operate in an environment that enables to alleviation of unemployment in Buffalo City in Eastern Cape Province., the workshop and the interviews were conducted to respond to the research question of this study, so that the objectives could be achieved. The data that was gathered from the workshop and the interviews with fourteen (14) participants represented twelve (12) NPOs, the study presents the following conclusions. The question behind the topic was, do non-profit organisations operate effectively in an environment that enables the alleviating unemployment in Buffalo City Metropolitan in Eastern Cape Province? The finding showed that NPOs’ problem was that of the persistent problem of the Department of Social Development not providing an enabling environment in which the NPOs in the Buffalo City Metropolitan Municipality could operate and alleviate unemployment.

The study would contribute immensely to the Department of Social Development by advising it on how to deliver on its mandate; that of placing more emphasis on NPOs to contribute to the creation of jobs/employment. The community at large would also benefit because the findings and the recommendations following the study’s positive outcomes would be directed at curbing the high unemployment rate in the Eastern Cape Province while contributing in policy formulation. The research findings generated would have the potential to steer progressive beneficiary debates about the extent to which employment initiatives needed to be decentralized to enhance shared values and people-centered development approaches. Other beneficiaries who would benefit from this study would be the stakeholders, particularly the managers or the directors of the NPOs. Recommendations made by myself on the findings generated from this study would help to promote the NPOs’ programmes. Additionally, these research findings and recommendations would be of use in helping to transform current approaches to NPOs.

Conflicts of Interest

The authors declare no conflicts of interest regarding the publication of this paper.

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