The use of social media drive during Covid-19 crisis by small, medium and micro enterprises in rural KwaZulu–Natal

Abstract

Globally, Small, Medium and Micro Enterprises are perceived as major economic growth contributors in solving problems pertaining to poverty alleviation, the high unemployment rate and inequalities. In countries such as China, the United States of America and the United Kingdom, these enterprises make a huge contribution to gross domestic product and have played a crucial role in poverty reduction and alleviating unemployment. In the context of South Africa, SMMEs are earmarked as strategic business mechanisms for job creation, innovation, competitiveness and economic growth. Rural SMMEs also play a remarkable role in promoting sustainable livelihoods in rural communities. However, in countries such as Brazil, France, the UK and Australia, investment in promoting SMME establishment has been operationalised, which has resulted in a greater impact on economic advancement, irrespective of projected environmental challenges. This signals SMMEs play a vital role in both developing and developed countries in contributing to their GDP. The South Africa government has invested much in promoting the establishment of SMMEs, with the intention of creating 90 percent new jobs by 2030, in accordance with the National Development Plan. Despite, this good intention, some SMMEs are unable to survive for more than five years due to various threats that affect their existence, which is of major concern to policy makers, researchers, government officials and other stakeholders with a key interest in this sector. Prior to the Covid-19 crisis, Rural SMMEs were faced with challenges such as lack of infrastructure and internet connectivity, which the outbreak of Covid-19 further exacerbated, with lockdown measures by government leading to some South African rural SMMEs closing down temporarily, numerous permanently, while others were declared technically insolvent. One of the factors that influence SMMEs worldwide, is their ability to use social media to create and maintain their business presence, communicate with customers and market and sell products/services. Nonetheless, rural SMMEs were found to lack social media strategies to support their survival and growth during the Covid-19 crisis, which implies not much was done regarding marketing, traditional or online, by rural SMMEs due to the high costs to sustain their business, resulting in a lack of operational cash flow due to the economic turmoil caused by the Covid-19 crisis.

The research study, therefore, investigated rural SMME growth and survival, focusing on critical factors affecting their use of social media as driver to ensure their continued existence during the Covid-19 crisis, enabling them to survive and grow in future crises. The motive behind the study focus on KZN is because nothing much has been done concerning the use of social media as a tool, in contributing to the survival and growth of rural SMMEs during the Covid-19 crisis in developing countries, with special reference to South Africa in rural KwaZulu-Natal. Further exploration in the use of social media as rural SMME growth and survival driver during the Covid-19 crisis is, therefore, needed to overhaul the existing knowledge contribution in SMME survival and growth, particularly in South Africa, with special reference to rural KwaZulu-Natal. This study will investigate the current research gap regarding a comprehensive understanding of critical factors influencing rural SMME survival and growth during Covid-19 crisis, thereby preparing them to deal with future crises. The second objective will thus be to design and propose a social media model as a driver for SMMEs in rural KwaZulu-Natal to learn from the Covid-19 crisis, contributing to their continued growth and survival. Theoretical models were found to be insufficiently explored in previous studies. Therefore, this study intends to narrow the identified knowledge gaps through enhancing the state of South African SMMEs, with special reference SMMEs in rural KwaZulu-Natal, regarding their survival and growth during Covid-19 crisis. The study was conducted in seven rural places within the KwaZulu-Natal Province, using a quantitative method, where a closed-ended questionnaire was used to collect primary data, from 374 rural SMMEs owners and managers. A non- probability, convenience sampling technique was employed, with inferential and descriptive statistical data analysis undertaken using the Statistical package for Social Sciences (v27. 0) software. Rural SMMEs were found to have a lack of social media awareness, insufficient technology infrastructure, deficient internet connectivity, and a shortage of technical and managerial competencies to adopt and use social media during the Covid-19 crisis. This implies environmental factors had a huge negative influence on the use of social media by rural SMMEs; this resulted in a lack of innovation, which is instrumental in SMME survival and growth.

Further constraints were found to include social support and networking that led to business failure in social media adoption and use, thus, social media marketing strategies were absent, with management perception constraints leading to business failure in using social media for survival and growth during the Covid-19 crisis. Survival and growth strategies were perceived as strategic business mechanisms to improve rural SMME performance in terms of their survival and growth during the Covid-19 crisis. The prime insights were provided in both practical and theoretical implications of the study. These findings enabled the design and proposal for implementation of a seven-stage social media model, as a survival and growth driving tool for rural SMME during crises, such as the Covid-19 pandemic and in future pandemics within the KwaZulu-Natal Province. It is recommended rural SMMEs should strengthen their innovativeness in order to embrace technology for social media adoption and use, in addition to investing in technology advancement, in order to adapt to rapid environmental changes. Moreover, government policy re-evaluation regarding rural SMME survival and growth mechanisms is recommended, in order that government regulations and policies promote rural SMME survival and growth in future pandemics in South Africa, with special reference to rural KZN.