Covid-19 Effect on Business Performance SMMES Perspectives in a South African Context
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Sep 30, 2021
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Abstract
Purpose: There is lack of enough empirical and conceptual studies of business performance among Small Medium Enterprises (SMEs), not only in South Africa, but the African continent.
Design/methodology/approach: A quantitative study was conducted with the use of an online survey distributed to the sample of 169 participants who were SMME owners and management in Johannesburg CBD.
Findings: The results showed that most SMMEs owners used strategic planning techniques which helped improve their performance. Formalizing SMMEs strategic planning process and taking advantage of technology is imperative for business performance. However, these results were based on a single point in time; therefore,
longitudinal research will be able to provide new insight on how strategic planning can influence the performance of SMMEs.
Research limitations/implications: This research study sought to investigate the Small Micro Medium Enterprises (SMMEs)’ perspective on business performance during Covid-19 in Johannesburg Central District Municipality (CBD).
Practical implications: The research focused mainly on SMMEs operating in Johannesburg CBD
Paper type: Research Paper
Design/methodology/approach: A quantitative study was conducted with the use of an online survey distributed to the sample of 169 participants who were SMME owners and management in Johannesburg CBD.
Findings: The results showed that most SMMEs owners used strategic planning techniques which helped improve their performance. Formalizing SMMEs strategic planning process and taking advantage of technology is imperative for business performance. However, these results were based on a single point in time; therefore,
longitudinal research will be able to provide new insight on how strategic planning can influence the performance of SMMEs.
Research limitations/implications: This research study sought to investigate the Small Micro Medium Enterprises (SMMEs)’ perspective on business performance during Covid-19 in Johannesburg Central District Municipality (CBD).
Practical implications: The research focused mainly on SMMEs operating in Johannesburg CBD
Paper type: Research Paper
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References
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Bvuma, S., & Marnewick, C. (2020). Sustainable livelihoods of township small, medium and micro enterprises towards growth and development. Sustainability (Switzerland), 12(8). https://doi.org/10.3390/SU12083149
DSBD. (2020). Impact of COVID-19 on Micro and Informal Businesses. Department Small Business Development. http://www.dsbd.gov.za/
French, S. J., Kelly, S. J., &Harrison, J. L. (2004). The role of strategic planning in the performance of small, professional service firms: A research note. Journal of Management Development, 23(8), 765–776. https://doi.org/10.1108/02621710410549611
GEM, G. E. M. (2018). Global Reports 2017/18. https://www.gemconsortium.org/report/gem-2017-2018-global-report
Gen 22 on Sloane. (2020). COVID-19 Impact on South Africa SMMEs (1)(2).pdf. http://ugu.gov.za/Documents/COVID-19 SMME/COVID-19 Impact on South Africa SMMEs.pdf
Gomera, S., Chinyamurindi, W. T., & Mishi, S. (2018). Relationship between strategic planning and financial performance: The case of small, micro-and medium-scale businesses in the Buffalo City Metropolitan. South African Journal of Economic and Management Sciences, 21(1).https://doi.org/https://doi.org/10.4102/sajems.v21i1.1634
ILDP. (2014). INFORMAL, SMALL MEDIUM AND MICRO ENTERPRISE (SMME) INFORMAL SMALL MEDIUM AND MICRO ENTERPRISES (SMME) RETAILERS IN SOUTH AFRICA ILDP 2014.
International Trade Centere. (2020). SME Competitiveness Outlook 2020: COVID-19: The Great Lockdown and its Impact on Small Business. In American Journal of Emergency Medicine(Vol. 38, Issue 2). https://doi.org/10.1016/j.ajem.2020.04.048
Jauhari, H., & Periansya, P. (2021). Economic Growth, Poverty, Urbanization, and the Small and Medium Enterprises (SMEs) in Indonesia: Analysis of Cointegration and Causality. Binus Business Review, 12(2), 143–150. https://scholar.google.co.id/citations?view_op=view_citation&hl=en&user=WkNvivgAAAAJ&citation_for_view=WkNvivgAAAAJ:0EnyYjriUFMC
Kalidas, S., Magwentshu, N., & Rajagopaul, A. (2020). How South African SMEs can survive and thrive post COVID-19. McKinsey&Company. https://www.mckinsey.com/featured-insights/middle-east-and-africa/how-south-african-smes-can-survive-and-thrive-post-covid-19Khajeh, E. H. Al. (2018). Impacts of leadership styles on organizational performance. Journal of Human Resources Management Research. https://doi.org/10.5171/2018.687849
Kunene, L. N. (2020). The dimensions of the impact of COVID-19 on Small and Micro Businesses in South Africa. -. University of KwaZulu-Natal. https://clms.ukzn.ac.za/the-dimensions-of-the-impact-of-covid-19-on-small-and-micro-businesses-in-south-africa/
Murimbika, Mce. (2011). Influence of strategic management practices on the entrepreneurial orientation of South African firms in the financial and business services sector.
Nkulu, M. (2012). The use of strategic planning for small, medium and micro enterprises in the retail industry.February, 1–121.
Obiwuru, T. C., Okwu, A. T., Akpa, V., & Nwankwere, I. A. (2011). Effects of leadership style on organizational performance: A survey of selected small scale enterprises in IKOSIKETU Council development area of Lagos state, Nigeria. Australian Journal of Business and Management Research, 1(7), 100–111. https://www.researchgate.net/publication/285806473_Effects_of_leadership_style_on_organizational_performance_A_survey_of_selected_small_scale_enterprises_in_IKOSIKETU_Council_development_area_of_Lagos_state_Nigeria
P, M. (2020). COVID-19: The impact on small businesses and gaps in current solutions the case for better solutions to support entrepreneurs in townships. Centre for Development and Enterprise. https://www.cde.org.za/covid-19-the-impact-on-small-businesses-and-gaps-in-current-solutions/
Pieter. (2019). SMME Quarterly Update 3 rd Quarter 2019 The Small Enterprise Development Agency.
Sammut-Bonnici, T., & McGee, J. (2015). Case Study. In J. M. & T. Sammut-Bonnici (Ed.), Wiley Encyclopedia of Management 3rd edition Vol 12 Strategic Management (pp.2)(3rd ed., p. 2). John Wiley & Sons. https://www.researchgate.net/publication/280247239_case_study
Sandada, M., Pooe, D., & Dhurup, M. (2014). Strategic Planning And Its Relationship With Business Performance AmongSmall And Medium Enterprises In South Africa. International Business & Economics Research Journal (IBER), 13(3), 659–670. https://doi.org/10.19030/IBER.V13I3.8602
Saunders, M. N. K., Gray, D. E., & Goregaokar, H. (2014a). SME innovation and learning: The role of networks and crisis events. European Journal of Training and Development, 38(1–2), 136–149. https://doi.org/10.1108/EJTD-07-2013-0073
Saunders, M. N. K., Gray, D. E., & Goregaokar, H. (2014b). SME innovation and learning: The role of networks and crisis events. European Journal of Training and Development, 38(1–2), 136–149. https://doi.org/10.1108/EJTD-07-2013-0073
Schwab, K. (2018). The Global Competitiveness Report 2018. https://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf
Skokan, K., Pawliczek, A., & Piszczur, R. (2013). Strategic Planning and Business Performance of Micro, Small and Medium-Sized Enterprises. Journal of Competitiveness, 5(4), 57–72. https://doi.org/10.7441/JOC.2013.04.04
Small Enterprise Development Agency. (2017). SMME Quarterly Update 3rd Quarter 2017. http://www.seda.org.za/Publications/Publications/SMME Quarterly 2017-Q3.pdf
Statistics South Africa. (2020). Business impact survey of the COVID-19 pandemic in South Africa. STATISTICS SOUTH AFRICA. http://webcache.googleusercontent.com/search?q=cache:Oc5AHWjfyQcJ:www.statssa.gov.za/publications/Report-00-80-01/Report-00-80-01April2020.pdf+&cd=1&hl=id&ct=clnk&gl=id
Trade and Industrial Policy Strategies. (2017). REB Special Edition -The State ofSmall Business in South Africa 2017. Trade & Industrial Policy Strategies (TIPS). https://www.tips.org.za/manufacturing-data/the-real-economy-bulletin/the-state-of-small-business-in-south-africa/item/3366-the-real-economy-bulletin-the-state-of-small-business-in-south-africa-2017
Turyakira, P., Venter, E., & Smith, E. (2012). Corporate social responsibility for SMEs: A proposedhypothesised model. African Journal of Business Ethics, 6(2), 15. https://doi.org/10.4103/1817-7417.111015
Tustin, D. H., Clercq, B.De, & Venter, J. M. P. (2006). The impact of taxation on SME retailers in Gauteng. Pretoria: UnisaPress.
Bvuma, S., & Marnewick, C. (2020). Sustainable livelihoods of township small, medium and micro enterprises towards growth and development. Sustainability (Switzerland), 12(8). https://doi.org/10.3390/SU12083149
DSBD. (2020). Impact of COVID-19 on Micro and Informal Businesses. Department Small Business Development. http://www.dsbd.gov.za/
French, S. J., Kelly, S. J., &Harrison, J. L. (2004). The role of strategic planning in the performance of small, professional service firms: A research note. Journal of Management Development, 23(8), 765–776. https://doi.org/10.1108/02621710410549611
GEM, G. E. M. (2018). Global Reports 2017/18. https://www.gemconsortium.org/report/gem-2017-2018-global-report
Gen 22 on Sloane. (2020). COVID-19 Impact on South Africa SMMEs (1)(2).pdf. http://ugu.gov.za/Documents/COVID-19 SMME/COVID-19 Impact on South Africa SMMEs.pdf
Gomera, S., Chinyamurindi, W. T., & Mishi, S. (2018). Relationship between strategic planning and financial performance: The case of small, micro-and medium-scale businesses in the Buffalo City Metropolitan. South African Journal of Economic and Management Sciences, 21(1).https://doi.org/https://doi.org/10.4102/sajems.v21i1.1634
ILDP. (2014). INFORMAL, SMALL MEDIUM AND MICRO ENTERPRISE (SMME) INFORMAL SMALL MEDIUM AND MICRO ENTERPRISES (SMME) RETAILERS IN SOUTH AFRICA ILDP 2014.
International Trade Centere. (2020). SME Competitiveness Outlook 2020: COVID-19: The Great Lockdown and its Impact on Small Business. In American Journal of Emergency Medicine(Vol. 38, Issue 2). https://doi.org/10.1016/j.ajem.2020.04.048
Jauhari, H., & Periansya, P. (2021). Economic Growth, Poverty, Urbanization, and the Small and Medium Enterprises (SMEs) in Indonesia: Analysis of Cointegration and Causality. Binus Business Review, 12(2), 143–150. https://scholar.google.co.id/citations?view_op=view_citation&hl=en&user=WkNvivgAAAAJ&citation_for_view=WkNvivgAAAAJ:0EnyYjriUFMC
Kalidas, S., Magwentshu, N., & Rajagopaul, A. (2020). How South African SMEs can survive and thrive post COVID-19. McKinsey&Company. https://www.mckinsey.com/featured-insights/middle-east-and-africa/how-south-african-smes-can-survive-and-thrive-post-covid-19Khajeh, E. H. Al. (2018). Impacts of leadership styles on organizational performance. Journal of Human Resources Management Research. https://doi.org/10.5171/2018.687849
Kunene, L. N. (2020). The dimensions of the impact of COVID-19 on Small and Micro Businesses in South Africa. -. University of KwaZulu-Natal. https://clms.ukzn.ac.za/the-dimensions-of-the-impact-of-covid-19-on-small-and-micro-businesses-in-south-africa/
Murimbika, Mce. (2011). Influence of strategic management practices on the entrepreneurial orientation of South African firms in the financial and business services sector.
Nkulu, M. (2012). The use of strategic planning for small, medium and micro enterprises in the retail industry.February, 1–121.
Obiwuru, T. C., Okwu, A. T., Akpa, V., & Nwankwere, I. A. (2011). Effects of leadership style on organizational performance: A survey of selected small scale enterprises in IKOSIKETU Council development area of Lagos state, Nigeria. Australian Journal of Business and Management Research, 1(7), 100–111. https://www.researchgate.net/publication/285806473_Effects_of_leadership_style_on_organizational_performance_A_survey_of_selected_small_scale_enterprises_in_IKOSIKETU_Council_development_area_of_Lagos_state_Nigeria
P, M. (2020). COVID-19: The impact on small businesses and gaps in current solutions the case for better solutions to support entrepreneurs in townships. Centre for Development and Enterprise. https://www.cde.org.za/covid-19-the-impact-on-small-businesses-and-gaps-in-current-solutions/
Pieter. (2019). SMME Quarterly Update 3 rd Quarter 2019 The Small Enterprise Development Agency.
Sammut-Bonnici, T., & McGee, J. (2015). Case Study. In J. M. & T. Sammut-Bonnici (Ed.), Wiley Encyclopedia of Management 3rd edition Vol 12 Strategic Management (pp.2)(3rd ed., p. 2). John Wiley & Sons. https://www.researchgate.net/publication/280247239_case_study
Sandada, M., Pooe, D., & Dhurup, M. (2014). Strategic Planning And Its Relationship With Business Performance AmongSmall And Medium Enterprises In South Africa. International Business & Economics Research Journal (IBER), 13(3), 659–670. https://doi.org/10.19030/IBER.V13I3.8602
Saunders, M. N. K., Gray, D. E., & Goregaokar, H. (2014a). SME innovation and learning: The role of networks and crisis events. European Journal of Training and Development, 38(1–2), 136–149. https://doi.org/10.1108/EJTD-07-2013-0073
Saunders, M. N. K., Gray, D. E., & Goregaokar, H. (2014b). SME innovation and learning: The role of networks and crisis events. European Journal of Training and Development, 38(1–2), 136–149. https://doi.org/10.1108/EJTD-07-2013-0073
Schwab, K. (2018). The Global Competitiveness Report 2018. https://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf
Skokan, K., Pawliczek, A., & Piszczur, R. (2013). Strategic Planning and Business Performance of Micro, Small and Medium-Sized Enterprises. Journal of Competitiveness, 5(4), 57–72. https://doi.org/10.7441/JOC.2013.04.04
Small Enterprise Development Agency. (2017). SMME Quarterly Update 3rd Quarter 2017. http://www.seda.org.za/Publications/Publications/SMME Quarterly 2017-Q3.pdf
Statistics South Africa. (2020). Business impact survey of the COVID-19 pandemic in South Africa. STATISTICS SOUTH AFRICA. http://webcache.googleusercontent.com/search?q=cache:Oc5AHWjfyQcJ:www.statssa.gov.za/publications/Report-00-80-01/Report-00-80-01April2020.pdf+&cd=1&hl=id&ct=clnk&gl=id
Trade and Industrial Policy Strategies. (2017). REB Special Edition -The State ofSmall Business in South Africa 2017. Trade & Industrial Policy Strategies (TIPS). https://www.tips.org.za/manufacturing-data/the-real-economy-bulletin/the-state-of-small-business-in-south-africa/item/3366-the-real-economy-bulletin-the-state-of-small-business-in-south-africa-2017
Turyakira, P., Venter, E., & Smith, E. (2012). Corporate social responsibility for SMEs: A proposedhypothesised model. African Journal of Business Ethics, 6(2), 15. https://doi.org/10.4103/1817-7417.111015
Tustin, D. H., Clercq, B.De, & Venter, J. M. P. (2006). The impact of taxation on SME retailers in Gauteng. Pretoria: UnisaPress.