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The main purpose of this study was to evaluate the ability of smallscale agribusinesses and household income generating activities tocreate employment and generate income. A total of 50 agribusinessescomprising 33 primary production businesses and 17 agro-processingbusinesses were randomly selected for the study. For household incomegenerating activities, a total of 85 households were selected where anagribusiness was located. The households were purposely selected usingthe snow-balling methodology. Closed and open-ended questionnaires wereused to collect data on agribusinesses and household income generatingactivities from managers of agribusinesses and selected households. Theresults from the agribusiness survey revealed that primary productionbusinesses were creating more employment opportunities compared toagro-processing. However, results of regression analysis showed thatthe mean gross margin was higher in agro-processing than in primaryproduction. Results for household income generating activities showedno evidence of employment creation, except that, these activities wereused to generate income and reduce household food insecurity. Accordingto the results, a mean income of R873.15 per month was generated bythese activities. Although the income was not adequate to support amean number of 8 dependants in a household, the income was higher thanthe pension grant of R700 per month which rural people depend on. Themain constraints facing both agribusinesses and household incomegenerating activities were lack of working capital, management skills,and marketing constraints. Financial support and skills training wereidentified as necessary strategies to overcome these constraints and toimprove the outcomes from agri-businesses and household incomegenerating activities. The study findings revealed similarities anddifferences between agri-businesses and household income generatingactivities. The differences were in management style, capital invested,final product, income and employment generated. Policy makers need torealize these differences and formulate policies accordingly forsuccess and sustainability of these two poverty reduction strategies.

An evaluation of small – scale agribusinesses and household income generating activities in Vhembe district of Limpopo province, South Africa.