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Strategic Responses in the COVID-19 Period: A Study of Selected Micro, Small and Medium Enterprises in the Western Cape

Author

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  • Fungai Chiruka

    (Department of Management and Entrepreneurship, University of the Western Cape, Bellville 7535, South Africa)

  • Zivanayi Mazhazha-Nyandoro

    (Department of Management and Entrepreneurship, University of the Western Cape, Bellville 7535, South Africa)

  • Renier Grosch

    (Department of Management and Entrepreneurship, University of the Western Cape, Bellville 7535, South Africa)

  • Ntandoyenkosi Sibindi

    (Department of Management and Entrepreneurship, University of the Western Cape, Bellville 7535, South Africa)

Abstract

The COVID-19 pandemic devastated businesses globally, leading to significant economic and social challenges. Micro, Small and Medium Enterprises (MSMEs) are particularly vulnerable to environmental turbulence, while their survival and resilience are critical to the national economic recovery of countries globally. This study adopted a qualitative approach to examine the strategic responses adopted by MSMEs and the impact of the strategies on survival and resilience during the COVID-19 pandemic period. The sample size comprises ten (10) MSMEs and data collection using a semi-structured interview schedule. The key findings indicate that the MSMEs adopted cost reduction and diversification strategies to mitigate the impact of the abrupt COVID-19 lockdowns and the subsequent financial and cashflow problems, threats to business continuity and survival. The study conclusions indicate that adopting a combination of cost reduction and diversification strategies improved the business continuity and survival of MSMEs during the COVID-19 pandemic. The study recommendations include the need for government and stakeholders to enhance the capacity and competence of MSMEs in strategic and operational planning, investing in technology, innovation, creativity, training and development of strategic agility and fostering adaptive organisational cultures that enhance flexibility, resilience and survival when faced with economic and business environment disruptions in future.

Suggested Citation

  • Fungai Chiruka & Zivanayi Mazhazha-Nyandoro & Renier Grosch & Ntandoyenkosi Sibindi, 2025. "Strategic Responses in the COVID-19 Period: A Study of Selected Micro, Small and Medium Enterprises in the Western Cape," Businesses, MDPI, vol. 5(1), pages 1-15, March.
    • Handle: RePEc:gam:jbusin:v:5:y:2025:i:1:p:13-:d:1608056
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    References listed on IDEAS

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    1. Seetharaman, Priya, 2020. "Business models shifts: Impact of Covid-19," International Journal of Information Management, Elsevier, vol. 54(C).
    2. Frédéric Delmar & Johan Wiklund, 2008. "The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study," Entrepreneurship Theory and Practice, , vol. 32(3), pages 437-457, May.
    3. Caballero-Morales, Santiago-Omar, 2021. "Innovation as recovery strategy for SMEs in emerging economies during the COVID-19 pandemic," Research in International Business and Finance, Elsevier, vol. 57(C).
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