Repurposing entrepreneurial recovery strategies employed by small, medium, and micro enterprises during the covid19 pandemic within eThekwini municipality.
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Date
2021
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Abstract
The purpose of this study was to examine and evaluate SMMEs’ entrepreneurial
recovery, and strategies they could adopt to sustain themselves during this COVID-19
pandemic crisis. The novel coronavirus disease 2019 (COVID-19) has caused a major
shock in the world economy. Control measures to limit the spread of the virus have
substantially weakened the economic systems in many countries, including South
Africa. This pandemic has resulted in ‘lockdowns’, which have paralyzed entire sectors
(travel, tourism, retail, production, and distribution chains) and global economic
systems, leading to an economic crisis affecting millions of people and thousands of
businesses (UNDP 2020). Small, Medium, and Micro Enterprises (SMMEs) appear to
be the most affected. Some analysts are predicting that around 60% of SMMEs may
close before the crisis is over.
The methodology chosen for this study was qualitative-oriented, and the associated
research design acted as the research blueprint for data collection and strategy. The
study selected different small businesses in the eThekwini municipality area in the
province of KwaZulu-Natal. Participating firms were small businesses that have
experienced a significant impact from the current COVID-19 outbreak and measures.
The sample size consisted of 15 participants selected from registered business
entities. To avoid face-to-face contact and follow COVID-19 protocol and regulations,
the research was mostly conducted with the business owner or management
representative.
The aim of this research is to identify the key findings for the situation of SMMEs, and
their recovery strategies during this socioeconomic shock. The research findings
highlight that majority of respondents in this study, had difficulties financing their
companies, the monthly loss was experienced, and a huge drop was observed the
respondents. The decline in their business activity and operation was also due to the
regulatory closure of establishments, as a result of the Disaster Management Act.
The research found that most SMMES have managed to put in place recovery
strategies to survive and resist the economic downturn, but others also had to close
their business – often permanently. The research also highlights the recommendations
for further research.
Description
Master’s Degree. University of KwaZulu-Natal, Durban.