Answer to Question #316666 in Management for Ander

Question

3. Describe the impact of the COVID-19 pandemic on business organisations (SMMEs) in South

Africa.

Answer 1

For South African SMMEs, already having to contend with a contracting economy, additional shocks from COVID-19 are putting further pressure on their operations. Lockdown measures have caused revenues in many SMMEs to fall precipitously and the majority report that they are being forced to cut back on business spending to survive.

For some, this may not be enough; analysts are predicting that around 60percent of SMMEs may close before the crisis is over. Many of the businesses are struggling to survive.

More than half of the owners of Small, Medium and Micro Enterprises (SMME’s) say that they experienced great uncertainty regarding the sustainability of their businesses during the last few months, due to the Covid-19 pandemic.