Abstract
M.Com. (Development Economics)
Energy is considered the backbone of an economy’s prosperity and progress, and plays a crucial role in socio-economic development. The importance of electricity is a vital infrastructural input for socio-economic development, and the effectiveness and significance of electricity to individuals is obvious in today’s world. Electricity plays an important role in both the production and consumption of goods and services within an economy, and the availability of electricity has been a major contributor to the technological and scientific advancements that have improved the standards of living across countries.
This dissertation focuses on the impact of load shedding on small and medium enterprises in the city of Johannesburg, and seeks to develop a clear picture of the electricity industry and how it impacts the different sectors in the economy. The secondary aim of the study includes investigating the extent to which specific sectors are affected by load shedding.
The evidence shows that smaller enterprises were more affected than medium-sized enterprises. When asked about the impact of load shedding on their businesses, owners of small enterprises indicated a high impact on their operating profit, service delivery, competitiveness, and turnover. The general impact of load shedding is that some industries were more affected than others.