A survival framework for SMME’s based on COVID-19 events in the Western Cape of South Africa

Abstract

Background: Many small-, medium- and micro-sized enterprises (SMMEs) struggled for survival in South Africa during the coronavirus disease 2019 (COVID-19) pandemic. Unexpectedly, several SMMEs in the Western Cape province of South Africa not only survived but also thrived. Investigation was therefore needed to better understand how they survived to fill the knowledge gap.

Aim: This research aimed at ascertaining the reasons why and how SMMEs survived a prolonged pandemic. It thereby investigated the possibilities of developing a framework for SMME survival during crises such as a prolonged pandemic.

Setting: The study involved 16 different types of successful SMMEs, which operated in the Western Cape, South Africa, before, during and after the COVID-19 pandemic.

Methods: The study employed semi-structured interviews with 16 participants as SMME owners, following a qualitative approach. Qualitative data were generated via snowball sampling following the COVID-19 pandemic and were analysed manually.

Results: Study’s findings enabled the development of a proposed survival framework for SMMEs during times of crisis, such as a pandemic.

Conclusion: The study succeeded in better understanding the challenges experienced by the SMMEs during the COVID-19 pandemic. It revealed several survival factors and actions, including the contribution of the Western Cape Government’s attempts towards an entrepreneurial ecosystem.

Contribution: Drawing in part on resilience theory, a possible survival framework is proposed for entrepreneurs to consider whereby they may establish self-constructed support for the continuity of their SMMEs during prolonged times of crisis.