Counter-Bootstrapping Practices and Inhibiting Factors among Agricultural Co-operatives in South Africa

Abstract

This study investigates counter-bootstrapping practices adopted by co-operatives in South Africa and examines factors inhibiting full utilisation of financial bootstrapping. The research seeks to provide insight into why certain bootstrapping strategies remain underutilised, despite their potential role in sustaining and enhancing co-operative performance and resilience. Using a sequential mixed-methods design, data were collected from 52 agricultural co-operatives through structured questionnaires and in-depth interviews. Quantitative findings were analysed descriptively via SPSS, while qualitative data underwent thematic analysis using Atlas.ti to explore underlying counter-practices and inhibiting factors. Co-operatives exhibit limited adoption of key bootstrapping methods, often engaging in counter-bootstrapping behaviours due to unsubstantiated beliefs, education gaps, and structural limitations. Findings highlight the need for targeted interventions addressing financial literacy, trust, ownership risk, and structural challenges. Stakeholders must support co-operatives in adopting effective bootstrapping while discouraging counter-productive financial behaviours that undermine sustainability, growth, and long-term survival in resource-constrained environments. The study offers novel empirical insights on counter bootstrapping practices and inhibiting factors affecting co-operatives in South Africa. While bootstrapping is widely promoted, little is known about why co-operatives fail to fully adopt these practices. This study contributes to filling that gap, informing policy, capacity building, and financial management strategies for co-operative sustainability.