Foreign Owned Small, Medium and Micro Enterprises in a South African Township and the COVID-19 Pandemic

Abstract

Foreign-owned SMMEs lessen poverty and encourage economic development. They are easily distinguished from their local counterparts by the unique way in which they serve society. For example, retailers from China mostly service the markets in the urban areas while those from Somalia service the township areas. Extant literature focuses on the difficulties that foreign-owned SMMEs face such as insufficient funds, business expertise, and financial knowledge to successfully run businesses. Others see strict laws, compliance requirements, and Xenophobia as major problems that foreign-owned SMMEs face. Unfortunately, the COVID-19 pandemic with its conventions further complicated the situation of the foreign-owned SMMES. Using a qualitative research approach, this study investigated the influence that the COVID-19 pandemic had on the operations of SMMES in Ekurhuleni Township. It found inter alia that the South African government provided some relief for SMMEs, however, foreign-owned SMMEs were not included.