Investigating the impact of loadshedding on Small, Medium, and Micro enterprises in Klerksdorp, South Africa

Abstract

Eskom's long-running inability to provide reliable electricity is a key reason for the stagnating South African economy. The negative impact on the economy is also keenly felt in the Small, Medium, and Micro Enterprise (SMEE) sector, with many of these businesses struggling to keep their doors open. This article uses a qualitative research design to investigate the impact of loadshedding on SMMEs in Klerksdorp, South Africa. 31 SMMEs were sampled and interviewed in August 2023. The results speak to the increased operational costs and financial losses as a result of load shedding. Although a relatively small number of respondents had to resort to layoffs as a mitigation strategy, the percentage of the workforce that was retrenched ranged between 40 and 50 percent. The results of this study remind us of the urgent need to protect employment opportunities created by SMMEs, often against the odds.