Abstract
South Africa (SA) has been experiencing load-shedding since 2008 and this shortage in the supply of electricity remains a challenge for the economy to date. As a developing country that has high poverty and unemployment rates, small businesses must play a vital role in the weak economy by alleviating poverty, creating jobs, creating competition, promoting innovation, and significantly contributing to the economic development of the country. The issue that small businesses face is that they rely largely on electricity, which, during load-shedding, is not always accessible, causing delays in the regular business operations that the businesses must conduct. There is currently little evidence in the literature linking load-shedding to small businesses at the Ga-Rankuwa Industrial Park, although there is literature describing comparable problems in other regions.
This study investigated the perceived impact of load-shedding on job creation by small businesses at the Ga-Rankuwa Industrial Park. The study used a mixed-methods approach, adopting a triangulation research design. The sample comprised 69 small businesses in different sectors at the industrial park. The respondents participated in a structured questionnaire and were interviewed in person.
The results of the study revealed that small businesses at the Ga-Rankuwa Industrial Park are negatively impacted by load-shedding, as most respondents’ perceptions are that load-shedding has contributed to revenue loss, increases in operating costs and the retrenchment of employees. The findings indicated that the socioeconomic wellbeing of the respondents was negatively impacted. Therefore, reducing load-shedding’s negative effects on small businesses is of paramount importance.
It is recommended that the South African government should subsidise small businesses for the purchase of alternative energy sources and give local municipalities the mandate to investigate alternative energy sources that would aid the national grid.