The Effect of Covid-19 Pandemic Among Local Small Medium Enterprises: A Case of Johannesburg, Region G

Abstract

This study is orientated around impact assessment and small, medium and micro enterprises (SMMEs) and focuses on small and medium enterprises (SMEs) in the township. The main aim of the study was to investigate the effects of the Covid-19 pandemic on selected SMME's in region G12, Joburg South, City of Johannesburg. Small businesses are more vulnerable during economic downturns, partly because they have fewer resources with which to react to changing circumstances. Additional shocks from Covid-19 are putting additional strain on South-African SME's, who are already dealing with a declining economy. As a result of the lockout, many small businesses have seen their revenues collapse, and the majority has had to cut back on company spending in order to stay alive. SMEs struggled to stay afloat because they were forced to close-down their businesses. Covid-19 epidemic appears to have increased fear and uncertainty among people, leading in new behaviours and beliefs. Various measures were taken to limit the effects of the outbreak. Using surveys, the study identifies the effects of Covid-19 on SMEs in Region G12. A literature review and desktop analysis were considered to understand the conceptual framework and the developments around the SMEs. The analysis found that the Covid-19 epidemic has a huge impact on SMEs. The study shows that the coronavirus pandemic has a range of consequences on the economy, notably on SMEs, on both the supply and demand sides. The Covid-19 outbreak caused a slew of problems and barriers for small and medium-sized businesses. In addition, supply networks were interrupted, leading in shortages of components and intermediate items. The effects are magnified when workers are laid off and firms are unable to pay salaries. The study concludes with a set of recommendations for mitigating pandemic outbreaks on small businesses.