Abstract
Small to Medium Enterprises (SMMEs) are faced with numerous challenges in an ever-changing business environment. Entrepreneurs and management are constantly under pressure to create and develop a sustainable competitive advantage. According to Sadiku-Dushi et al., (2019) SMME failure is primarily due to a lack of funding, limited resources and the poor management thereof, as well as a lack of entrepreneurial education, skills, and poor strategy adoption. SMMEs are globally recognized as the gateway to new job creation and growth. In the South African economy with low economic growth expectations and a record high unemployment rate, SMMEs have the daunting task of providing job opportunities and economic growth for the country’s GDP. Over 95% of businesses worldwide are SMMEs, which employ between 60-70% of the workforce. The COVID-19 pandemic engendered unprecedented challenges globally, with South African SMMEs facing considerable operational and strategic upheavals, therefore putting the employment of the SMME workforce at significant risk.
Through a quantitative data based methodical approach entailing electronic questionnaires and a literature review spanning from the onset of the pandemic to recent developments, this study scrutinizes the extent to which entrepreneurs have navigated similar limitations post-State of emergency compared to the pre-pandemic era. Therefore, emphasizing the role of an entrepreneurs' adaptive strategies, continuity of business processes, and the performance of these enterprises under the duress of Covid-19 related restrictions. Further evaluation of operational modifications prompted by the pandemic and their repercussions on the consistency and sustainability of business processes, as well as the competitive positioning of SMMEs in the South African economy, was discussed. As such, the effectiveness of various financial support mechanisms and the adaptability of SMMEs to the changing alert levels during the pandemic as well as the perceived impact of the pandemic on supplier relationships and the financial viability of SMMEs was discussed. This was done through statistical evidence obtained through the distribution of an electronic questionnaire.
The significance of this study lies in its targeted analysis of the potential academic and industrial implications. Academically, it enriches the existing body of knowledge within the Department of Quality and Operations Management at the University of Johannesburg, by providing insights during a global crisis. Industrially, it offers empirical
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evidence that could guide current and future SMMEs in South Africa to navigate and thrive during economic challenges brought on by such health crises. Therefore, recommendations were made for future research based on the research findings within the broader spectrum of small enterprises.
However, it must be noted that the study is limited and potentially skewed due to the data results, which are heavily concentrated in the Gauteng area. Despite these constraints, the dissertation serves as a critical examination of the pandemic’s ramifications and a strategic manual for resilience and sustainability in the face of global economic turmoil, within the South African setting.