Challenges Facing ICT Use during COVID-19 Pandemic: The Case of Small, Medium and Micro Enterprises in South Africa

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.