An investigation on the effectiveness of government structures established to support Small, Medium and Micro Enterprises in eThekwini Municipality during COVID-19 pandemic

Abstract

SMMEs are pivotal to the achievement of the goals espoused in the South African’s National Development Plan and remain core instrument for job creation, poverty alleviation, creativity and innovations that are strategic for national transformation. However, the survival and roles performance of these SMMEs was threatened by the disruptions and measures imposed to restrain the spread of COVID-19, therefore, necessitating governmental initiatives for the design of financial and non-financial support structures during the covid-19 era. This study, therefore, assess these support structures established by the government to moderate the consequences of pandemic on SMMEs, ensure their survival and safeguard their role performance in the national development plan. The study is based on questionnaire administered on 201 SMME leaders, owners, and managers in eThekwini Municipality, South Africa. Descriptive statistics was utilized on SPSS to provide insight to the data obtained from respondents. Findings from the results of data analysis show that there were issues in accessing government funding, stringent scoring system, limited knowledge of funding opportunities, insufficient training, and communication barriers. It is suggested that the government simplify funding applications, increase awareness and training programs, develop a more accommodating scoring system, and establish regular communication channels with SMMEs. These recommendations aim to strengthen the resilience of SMMEs as vital contributors to South Africa's economic recovery and growth.