Probable Measures to Aid South African Small Medium and Micro Enterprises’ Sustainability, Post-COVID-19: A Literature Review
11 Pages Posted: 12 Jun 2020 Last revised: 27 Oct 2020
Date Written: June 12, 2020
In a South African dispensation, Small, Medium and Micro Enterprises (SMMEs) significantly contribute towards the attainment of three socio-economic objectives, namely that of job creation, poverty alleviation, and advancing the national economy. Despite the latter, research showed that up to 75% of South African SMMEs fail after being in operation for three years. More often than not, the blame for the foregoing dispensation is placed on an unconducive economic environment however this was before the Coronavirus 2019 (COVID-19) pandemic. From February 2020, the South African government put measures in place to contain and/or eradicate the spreading of COVID-19. One of these measures was a “national lockdown” that prohibited the trading of non-essential goods and the rendering of non-essential services (from 26 March 2020 to 30 April 2020). Though noble, the reality at play is that the “national lockdown” caused national economic activities to come to a halt which, in turn, resulted in the temporary closure of many South African SMMEs. This is particularly the case despite national government’s initiatives put in place to assist SMMEs to remain afloat during the “national lockdown”. With South Africa having no choice but to embrace the fourth industrial revolution, like all other countries, this working paper addresses how South African SMMEs’ sustainability can be aided post-COVID-19. Non-empirical research was conducted taking into account a qualitative research methodology, namely a literature review. From the research conducted, it appears that South African SMMEs have no choice but to embrace the fourth industrial revolution while considering aspects of Society 5.0.
Keywords: Small Medium and Micro Enterprises, SMMEs, South Africa, Sustainability, COVID-19
JEL Classification: L21, M10, M21
Suggested Citation: Suggested Citation