The impact of coronavirus pandemic to small, medium and micro enterprises : a case of Umgungundlovu District Municipality.

Abstract

The aim of the study was to axamine the impact of Covid-19 pandemic on small, medium and micro enterprises (SMME’s), using Umgungundlovu District as a case study. In South Africa, SMMEs employ more than 80% of the workforce and have been integral towards the development of South Africa, employment creation and poverty alleviation. The Covid-19 pandemic, however, presented some opportunities and challenges to these SMMEs. Hence this study sought to examine the impact, challenges and opportunities faced by these SMMEs, as well as proffer recommendations on how SMMEs can be supported to deal with future unforeseen challenges such as Covid-19 pandemic. A qualitative approach was taken where data was gathered using semi-structured interviews and analysed using thematic analysis. A sample of 12 participants was selected from the target population that included SMME owners/managers in uMgungundlovu district of KwaZulu-Natal. The findings of the study highlight the impact of COVID-19 on SMMEs, revealing widespread closures and economic setbacks. The decline in SMMEs, particularly during Q3 2020, is a global trend. The study also highlights the interconnectedness of SMMEs with broader economic trends, with financial constraints and supply chain disruptions being major challenges. Opportunities for SMMEs during COVID-19 include the adoption of digital tools, social media marketing, and strategic alliances. However, challenges like the digital gap and the need for enhanced skills highlight areas for improvement. The findings emphasise the need for holistic support mechanisms and policy interventions to bolster SMMEs' resilience in post-pandemic recovery efforts. The study recommended providing targeted financial support, enhancing digital readiness, strengthening collaboration and networking, as well as developing crisis management strategies. Future studies were recommended to focus on the long-term effects of the pandemic on SMMEs, socio-economic impact of SMMEs, as well as resilience-building strategies for SMMEs.