An exploration of SME survival and growth strategies in Ethekwini metropolitan area during and post Covid-19 crisis

Abstract

Globally, SMEs were severely disrupted by the COVID-19 pandemic, especially in developing nations where systemic vulnerabilities are more noticeable. This study examines the growth and survival tactics used by SMEs in South Africa's eThekwini Metropolitan Area during the pandemic's peak and the subsequent recovery period. The study, which was based on a quantitative design, used a structured questionnaire to survey 304 managers and owners of SMEs. The results show that SMEs used a variety of survival tactics, such as lowering operating costs, integrating digital technology, and making short-term changes to their business models. Product diversification, strategic alliances, and the adoption of e-commerce were among the growth strategies. The Resource-Based View (RBV) and Dynamic Capabilities Theory, which shed light on how SMEs used internal resources and adjusted to external shocks, serve as the foundation for this study. Recovery efforts were, however, hampered by obstacles like a lack of digital infrastructure, difficulty accessing relief funds, and complicated regulations. A post-crisis policy reflection and a SWOT analysis provide strategic insight into enhancing the resilience of SMEs. The study ends with specific managerial and policy suggestions that can be applied to urban SME ecosystems in developing nations.

Authors & affiliations

Nkululeko Mbatha
Durban University of Technology

Lawrence Lekhanya
Durban University of Technology

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