The influence of the global pandemic (COVID-19) crisis on entrepreneurial innovation strategies amongst small and medium enterprises in Durban, KwaZulu-Natal

Abstract

It is evident and generally agreed by scholars around the world that Small and Medium Enterprises (SMEs) are the backbone of any thriving economy. For the SME sector to fully support the economic activities of a country, it needs to be absorbed in innovation activities that deliver products and services valued by customers. Studies conducted globally confirm a positive relationship between SMEs and their characteristic innovative nature. Paucity, however, remains in the local context of South Africa, particularly in Durban, on what influences SME innovation strategies. It was thus the current study aim to identify the influence of the global pandemic (COVID-19) crisis on entrepreneurial innovation strategies among SMEs in Durban, KwaZulu-Natal. In addition, the study recognized the impact of Corona Virus 2019 (COVID-19) on SME innovation, while also examining post-pandemic innovation strategies by SMEs. The study used a qualitative research design and structured interviews with openended questions, to gather data from respondents. Judgmental sampling determined participants who used innovation strategies during COVID-19. The sample size of the study was 15 SME owners/managers in Durban. With the closure of certain businesses, the COVID-19 impact forced a shift from probability to nonprobability sampling, as well as changes to the data collection initially planned for the study. Therefore, SMEs in Durban that were allowed to operate were targeted, where structured interviews were conducted to collect data from respondents with the aid of a research assistant. Collected data were analysed using thematic analysis. The study results are presented in the form of coded themes, where the main findings revealed the majority SMEs surveyed invest in technology. Furthermore, the results showed agreement by the majority interviewed Durban SME owners/managers that firm size influences innovation strategies, with strong agreement the global COVID-19 pandemic significantly changed consumer buying patterns. The research project additionally highlighted some of the most critical factors that influence SME innovation strategies in Durban. Policy makers, academics and SME stakeholders will find the study informative.