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Difficulties Encountered by SMMEs in uMhlathuze Municipality Due to COVID-19 Crisis

Author

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  • Esabel Phiri

    (Department of Business Management, University of South Africa, Pretoria 0002, South Africa)

  • Ntsieni Fitzgerald Ramasimu

    (Department of Business Management, University of South Africa, Pretoria 0002, South Africa)

Abstract

An investigation of the difficulties that confronted SMMEs in uMhlathuze Municipality because of the COVID-19 crisis was the purpose of this research. Given the novelty and severity of the COVID-19 pandemic, this research was motivated by the desire to obtain information that can be used by both the government and the SMMEs to prepare for future disasters. The research embraced a qualitative research design and a case study research approach and used semi-structured interviews to extract data from 12 purposefully sampled SMMEs. The thematic analysis technique and Atlas.ti software version 23.2.3.27778 were used to analyse the collected data. Research findings revealed that a loss of customers and income; disruption of business operations; health-related challenges; difficulties in accessing government aid; challenges in fulfilling financial obligations; business activities not compatible with power saving; government corruption and incompetency; increases in operating costs; losses due to stock which decayed; and supply chain disruptions were the challenges that confronted SMMEs during COVID-19. Basing on these findings, the researchers recommend that the government should equip SMMEs with disaster management skills to enable these entities to better circumvent future challenges. Additionally, in these volatile times, SMMEs should strive to set some savings aside to fall back on in times of need.

Suggested Citation

  • Esabel Phiri & Ntsieni Fitzgerald Ramasimu, 2025. "Difficulties Encountered by SMMEs in uMhlathuze Municipality Due to COVID-19 Crisis," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:743-:d:1570065
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    References listed on IDEAS

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    1. Robert W. Fairlie & Frank Fossen, 2021. "Did the $660 Billion Paycheck Protection Program and $220 Billion Economic Injury Disaster Loan Program Get Disbursed to Minority Communities in the Early Stages of COVID-19?," NBER Working Papers 28321, National Bureau of Economic Research, Inc.
    2. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    3. Mmboswobeni Watson Ladzani, 2022. "The impact of COVID-19 on small and micro-enterprises in South Africa," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 21(1), pages 23-38.
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