Abstract
M.A. (Environmental Management)
The Small Micro Medium Enterprise (SMME) sector plays a critical role in the economy of South Africa by reducing poverty and providing employment. South Africa has about 6 million SMMEs that employ more than 61% of citizens and contribute about 37% to the Gross Domestic Product (GDP). The growth and development of the sector over the years has however been compromised and threatened by the shortage of electricity and increasing electricity tariffs. Whereas large companies can manage to afford the adoption of energy efficiency measures in order to reduce energy costs, SMMEs have limited resources and may therefore struggle to afford energy efficiency adoption. However, there is a lack of scientific documentation about energy efficiency adoption amongst manufacturing SMMEs (M-SMMEs) in South Africa. The purpose of the research is to therefore assess the state of energy efficiency adoption amongst M-SMMEs, despite the challenges they experience. To achieve this research goal, the study surveyed and characterised the extent of energy efficiency adoption and also unveiled the drivers and barriers to energy efficiency adoption. Data were collected by means of surveys, making use of questionnaires. A sample of 30 firms was selected for the research. Almost all (96%) firms perceived EE as an opportunity. However, only 50% had adopted EE measures. Key drivers to adoption included the motive to reduce production costs, mitigate the impact of increasing electricity prices, gain competitive advantage and payback period. The gap between EE perception and adoption was caused by several barriers like the lack of finance, skills and time. Among non-adopters, 60% indicated their willingness to be trained in EE. The study therefore recommends improved capacity building through workshops for M-SMMEs.