Abstract
Informal businesses are part of solutions that government seeks to alleviate poverty and
unemployment, encouraging people to be entrepreneurs. Following a lockdown, due to the
coronavirus pandemic, most self-employed families suffered due to restrictions placed on their
business operations. This paper aims to examine the extent of the impact COVID-19 pandemic
had on informal businesses in the uMkhanyakude district. This is done through exploring the
SMEs' contribution to the local municipality and how they survived during the pandemic. This
study further investigates the effectiveness of policies and strategies to mitigate the effect of
COVID-19 on SMEs and the social well-being of informal entrepreneurs during the pandemic.
The widespread of the COVID-19 pandemic will deteriorate unless important socioeconomic
solutions are taken to avoid putting people's livelihoods in jeopardy. The Sustainable
Development Goals achievement is becoming more imperative. The pandemic effect on SMEs
and society has put more pressure on the district's economy. The objective of Local Economic
Development (LED) is to create an enabling environment in which local citizens and
institutions can make practical and accurate resolutions to support the local economy.
Therefore, the establishment of Small and Medium Enterprises (SMEs) can play a substantial
role in achieving the LED goal by Implementing more employment opportunities, including
self-employment, encouraging new initiatives, and developing the quality and prospects of life
for all.