The small business sector plays an important role in economic development and job creation.  SMEs are influenced by various factors and are often discriminated against by large businesses  due to their size. An initiative that can promote SMEs is the establishment of cooperatives. By using this business form, SMEs can increase their bargaining power, which will enable them to compete and survive. The cooperative cannot only contribute to the survival of the small business, but also plays an important role in building communities. This is an important aspect in South Africa, which is characterised by vast rural areas with communities living in poor conditions.
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