Abstract
Abstract
South Africa is experiencing electricity shortages that have led to ongoing load shedding by Eskom to manage demand when supply is insufficient. Load shedding has become one of the country’s most critical challenges, significantly disrupting day-to-day business operations and causing the closure of some small businesses. In developing economies, small and medium-sized enterprises (SMEs) play a crucial role in supporting rural livelihoods and local economic development. Despite this, limited literature exists on the effects of load shedding on SMEs in the Collins Chabane Local Municipality (CCLM).
This study examined the effects of load shedding on SMEs in CCLM using a mixed-methods triangulation design with 125 participants, including SME owners, managers and municipal officials. Participants were selected using purposive, snowball and cluster sampling. Quantitative data were collected from 100 respondents using questionnaires and analysed using Statistical Package for Social Sciences (SPSS), while qualitative data were obtained from 25 participants through face-to-face semi-structured interviews and analysed thematically.
The quantitative findings revealed that load shedding costs SMEs in CCLM an average of 61% of total revenue, and 59% of businesses were forced to lay off employees due to inability to pay wages. Significant associations were found between experiences of load shedding and variables such as gender, age group, respondent status, type of business, number of employees and additional income. Qualitative findings further showed that production losses are severe and unsustainable. The study highlights an urgent need for interventions to mitigate the effects of load shedding on SMEs through alternative energy solutions and government support.