The effects of load-shedding on Small, Medium, and Micro Enterprises in Seshego Township, Polokwane Local Municipality, Limpopo Province.

Abstract

The energy crisis is a growing issue amongst countries affecting business ventures, particularly within developing countries. The unreliable electricity supply in developing countries has become a great concern when considering economic growth targets. A significant number of people globally use electricity, which has led to increased demand for energy and the perpetuation of the energy crisis. Load-shedding has become a strategy used by various countries as a mitigation to the current energy crisis. However, load-shedding has affected the development and growth of Small, Medium and Micro Enterprises (SMMEs) particularly those operating in the townships. As a result, a significant number of these SMMEs’ owners are failing to cope with load-shedding induced challenges, and they end-up closing their businesses. On this note, this study sought to analyse the effects of load-shedding on SMEs in Seshego Township under Polokwane Local Municipality. Participants comprised SMMEs owners aged 19 years and older (n= 25) and five municipal officials. The study adopted a mixed methods approach by using in-depth interviews and questionnaires to collect participant data. Consequently, the study employed purposive and random sampling techniques in selecting the study’s participants within Seshego Township. The study was framed within the Economics of Power System Reliability and Planning theory, which put emphasis on the importance of a stable and reliable power supply in ensuring local economic development and growth. Findings of the study showed that load-shedding is affecting township SMMEs negatively due to disturbance during production and operational hours, resulting in the loss of profits. Business owners relying only on electricity without any alternative power source are significantly affected. However, the study also noted that township SMMEs are essential to local economic development by creating employment opportunities and enabling easy access to services within South African townships. As such, the study notes that it is essential for the relevant stakeholders to assist township SMMEs by providing the necessary support that enables them to grow.