Effects Of Load-Shedding On The Performance Of Small, Medium And Micro Enterprises In Gqeberha, South Africa

Abstract

Small, medium and micro enterprises (SMMEs) are recognized for promoting the livelihoods of the poor and for economic growth. The purpose of this study is to investigate how load-shedding affects the performance of SMMEs in the food industry in South Africa. The study was conducted in the Central Business District and Summerstrand areas in Gqeberha (formerly Port Elizabeth). The study is explorative and adopts a qualitative research design. The study population was made up of SMMEs owners in the food industry, with paid employees ranging from 5 to 200 people in the Central Business District and Summerstrand areas within Gqeberha (formerly Port Elizabeth). The purposive sampling method was utilized to select the study participants. The study revealed that load-shedding affected the capacity of SMMEs to provide quality products and services to their customers. To mitigate the effect of power outages, SMMEs adopted alternative power sources like backup generators and adjusted their operations to keep their businesses running. Also, the study confirmed that planned load-shedding enables SMMEs to plan and alleviate the effects of load-shedding. The study concluded that load-shedding disrupts the activities of SMMEs, which impedes customer satisfaction, leading to poor business performance.