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Re-engineering local economic development through SMMEs post-COVID-19 in rural municipalities

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  • Elvin Shava

    (University of KwaZulu-Natal: Durban, KwaZulu-Natal, ZA)

Abstract

Small Micro, Medium Enterprises (SMMEs) are the most strategic mechanisms rural municipalities in South Africa advocate for to generate employment and increase household income. The Citizen Empowerment Theory was utilised to understand how Local Economic Development (LED) can be re-engineered by SMMEs post-COVID-19 in South African rural municipalities. To arrive at a meaningful conclusion, the paper adopted a document analysis which draws from pre-COVID-19 narratives on SMMEs and examines government documents and peer-reviewed articles that inform SMME development post-COVID-19 in South Africa. Revelations emanating from the document analysis indicate the severe damage COVID-19 did to both formal and informal SMMEs. To grow and reposition themselves in the dynamic entrepreneurship landscape post-COVID-19, SMMEs in South Africa require strategic business approaches that enable them to draw funding from external sources instead of relying on government funding which in most cases has red tape and other bureaucratic complexities tied to it. Further analysis of documents indicates the need for rural SMMEs to embrace digital entrepreneurship where product marketing is done online including most of the business transactions. By doing this, evidence from the document review affirms that SMMEs become competitive by tapping into external markets in the process linking themselves to stakeholders who may have an impact on the growth and sustainability of SMMEs towards employment regeneration and improved LED in rural municipalities. To have an integrative LED that promotes citizen participation post-COVID-19, the paper recommends rural municipalities foster close ties with local SMMEs which is critical for enhancing their networking strategies while SMMEs diversify their portfolios to generate income as well as withstanding shocks that may be triggered by unpredictable external environments. Key Words:Local Economic Development, Small Medium and Micro Enterprises (SMMEs), Rural Municipalities, Economic Empowerment, South Africa

Suggested Citation

  • Elvin Shava, 2024. "Re-engineering local economic development through SMMEs post-COVID-19 in rural municipalities," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(3), pages 401-409, April.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:3:p:401-409
    DOI: 10.20525/ijrbs.v13i3.3028
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    References listed on IDEAS

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    1. Thorgren, Sara & Williams, Trenton Alma, 2020. "Staying alive during an unfolding crisis: How SMEs ward off impending disaster," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    2. Hai Guo & Zhuen Yang & Ran Huang & Anqi Guo, 2020. "The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-25, December.
    3. Elvin Shava & Tafadzwa Clementine Maramura, 2017. "National Development Plan as an Entrepreneurial Mechanism for Rural Economic Development in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 234-242.
    4. Jill Juergensen & José Guimón & Rajneesh Narula, 2020. "European SMEs amidst the COVID-19 crisis: assessing impact and policy responses," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 499-510, September.
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