TITLE:
Challenges Facing ICT Use during COVID-19 Pandemic: The Case of Small, Medium and Micro Enterprises in South Africa
AUTHORS:
Hlombe Gqoboka, Godfred Anakpo, Syden Mishi
KEYWORDS:
ICT Use, Challenges, COVID-19 Pandemic, SMMEs, South Africa
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.12 No.9,
September
26,
2022
ABSTRACT: COVID-19 and its related restrictions have led to
the closure of over 60% of Small, Medium and Micro
Enterprises (SMMEs) largely due to the inability to move from
physical to online business model. Using the desk research technique, this study examines the
ICT challenges of SMMEs, coping strategies and the road map for redress in
South Africa. Findings reveal challenges such as inadequate digital
infrastructure, lack of funds for digital investment, lack of digital literacy, and nature of SMMEs’ business and trade model are major ICT use
challenges faced by the SMMEs. SMMEs adopt measures such as laying off workers,
changing to high consumable products, and changing marketing
techniques to simple online marketing models and pricing strategies
to cope with some of the challenges. Based on the findings, we recommend
complementarity of the role of
key stakeholders, including business owners, governments, telecommunication industry players or
internet service providers, and business owners, as an indispensable approach.
Businesses need to plan to build resilience against any unforeseeable
eventualities that might have catastrophic impacts on their businesses. The government
needs to provide financial bailout and business recovery funds at an affordable cost to
businesses to help them acquire the necessary infrastructure needed to embrace
the change. Furthermore, long-term
investment in
digital infrastructure by the government toward universal access to the internet
by businesses is very necessary. It is also suggested that important industrial
actors, such as those in the telecommunications industry, collaborate with the
government to achieve universal access to the internet and other ICT
technologies by people and SMMEs. This should include a digital literacy
program to teach and equip businesses. Special interventions in the form of
market security for businesses that are vulnerable are also recommended.