NAVIGATING RISK BY USING A MULTIFACETED APPROACH TO CONTINGENCY PLANNING FOR BLACK SMES IN SOUTH AFRICA'S AUTOMOTIVE INDUSTRY DURING COVID-19
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Denis Desmond Peterson(1*)
MANCOSA (Management College of South Africa), Durban
(*) Corresponding Author
Keywords:
Small Business, Contingencies, Covid-19, Automotive Industry
Abstract
This study examines contingencies used by Black-owned SMEs in South Africa’s automotive industry during the COVID-19 pandemic to manage risks during this period. Semi-structured interviews were conducted with 11 SMEs, comprising six micro-businesses and five small businesses located in Gauteng and the Eastern Cape. Thematic analysis was used to analyze the data, revealing the contingencies implemented as responses to mitigate the risks to their sustainability. The findings show that participants employed multifaceted contingency strategies across financial, operational, human resource, socioeconomic, and technological domains. These measures were both proactive and reactive, highlighting the adaptability and resilience of the SMEs. The study emphasizes the importance of targeted policies and frameworks to support these enterprises in navigating risks and ensuring sustainability. These insights are crucial for policymakers, business leaders, and stakeholders committed to fostering resilience in South Africa's small business sector.
Keywords: Small Business; Contingencies, Covid-19; Automotive Industry
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References
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Akpan, I.J., Soopramanien, D. & Kwak, D.H. (2020) ‘Cutting-edge technologies for small business and innovation in the era of COVID-19 global health pandemic: A knowledge management approach’, Journal of Business Research, 116, pp. 255–263.
Alves, J.C., Lok, T.C., Luo, Y. & Hao, W. (2020) ‘Crisis Management for Small Business During the COVID-19 Outbreak: Survival, Resilience and Renewal Strategies’, Management Research Review, 43(8), pp. 959–975.
Arifah, A., Tariq, M. & Juni, M.H. (2019) ‘Decision Making in Disaster Management Cycle of Natural Disasters: A Review’, International Journal of Public Health and Clinical Sciences, 6(3), pp. 1–18.
Ayandibu, A.O., Kaseeram, I. & Ayandibu, E.O. (2021) ‘A Conceptual Model on the Challenges Affecting the Growth, Sustainability, and Survival of Small, Medium, and Micro Enterprise’, in Reshaping Entrepreneurship Education With Strategy and Innovation. IGI Global, pp. 1–16.
Bartik, A.W., Bertrand, M., Cullen, Z., Glaeser, E.L., Luca, M. & Stanton, C. (2020) ‘The Impact of COVID-19 on Small Business Outcomes and Expectations’, Proceedings of the National Academy of Sciences, 117(30), pp. 17656–17666.
Bouey, J. (2020) Assessment of COVID-19's Impact on Small and Medium-Sized Enterprises: Policy Recommendations. RAND Corporation.
Buffington, C., Dennis, C., Dinlersoz, E., Foster, L. & Klimek, S. (2020) ‘Measuring the Effect of COVID-19 on U.S. Small Businesses: The Small Business Pulse Survey’, U.S. Census Bureau.
Carungu, J., Di Pietra, R. & Molinari, M. (2021) ‘Accounting Information for Managers in Crisis Contexts: A COVID-19 Perspective’, Accounting, Auditing & Accountability Journal, 34(6), pp. 1322–1341.
Cowling, M., Brown, R. & Rocha, A. (2020) ‘Did You Save Some Cash for a Rainy COVID-19 Day? The Crisis and SMEs’, International Small Business Journal: Researching Entrepreneurship, 38(8), pp. 593–604.
Daniel, E., Costa, E. & Murphy, G. (2018) ‘Assessing the Effectiveness of Leadership in Crisis Management: An SME Perspective’, Leadership & Organization Development Journal, 39(6), pp. 746–761.
Deloitte (2019) Rooting SA: Strengthening the Local Automotive Industry. Available at: https://www2.deloitte.com.
Donner, H., Mohler, L. & Wilkins, E. (2021) ‘Lessons Learned for Economic Resilience During COVID-19’, Journal of Public Policy and Administration, 38(3), pp. 455–478.
Ferguson, C. (2018) ‘Business Continuity and Disaster Management within the Public Service in Relation to a National Development Plan’, Journal of Business Continuity & Emergency Planning, 11(3), pp. 243–255.
Hock-Doepgen, M., Clauss, T., Kraus, S. & Cheng, C.-F. (2021) ‘Knowledge Management Capabilities and Organizational Risk-Taking for Business Model Innovation in SMEs’, Journal of Business Research, 130, pp. 683–697.
Kahveci, E. (2021) ‘SME Survival Amid COVID-19: Insights from Emerging Economies’, Emerging Markets Review, 10(3), pp. 45–60.
Lowe, P., Fothergill, A. & McNamara, K.E. (2018) ‘Leveraging Indigenous Knowledge for Disaster Risk Reduction’, International Journal of Disaster Risk Reduction, 27, pp. 320–328.
Melly, H., Ratih, P. & Wahdiniwaty, R. (2022) ‘Crisis Management Strategies for SMEs in Pandemic Times’, Journal of SME Studies, 32(4), pp. 221–233.
Morrish, S.C. & Jones, R. (2020) ‘Post-Disaster Business Recovery: An Entrepreneurial Marketing Perspective’, Journal of Business Research, 113, pp. 83–92.
Mueller, G., Barford, A., Osborne, H., Pradhan, K., Proefke, R., Shrestha, S. & Pratiwi, A.M. (2023) ‘Disaster Diaries: Qualitative Research at a Distance’, International Journal of Qualitative Methods, 22, pp. 1–18.
NAAMSA (2020) Economic Impact of Covid-19 on the South African Automotive Sector. Available at: https://naamsa.net.
Naudé, W. (2020) ‘Entrepreneurial Recovery from COVID-19: Decentralization, Democratization, Demand, Distribution, and Demography’, IZA Institute of Labour Economics. Available at: https://www.iza.org/publications.
OECD (2021) Coronavirus (COVID-19): SME Policy Responses. Available at: https://www.oecd.org.
Sithole, M. (2015) ‘Addressing Inequality in South Africa: Black-Owned SMEs and Economic Transformation’, South African Journal of Economics, 83(1), pp. 109–128.
Taylor, M. & Taylor, A. (2013) ‘Managing Disaster Risks: Lessons for African Entrepreneurs’, African Journal of Business Management, 7(10), pp. 1–11.
Torrington, A. (2021) ‘South Africa's SME Relief and Its Challenges’, Journal of Economic Development, 44(5), pp. 178–194.
Waring, S. (2019) ‘Using Live Disaster Exercises to Study Large Multiteam Systems in Extreme Environments: Methodological and Measurement Fit’, Organizational Psychology Review, 9(4), pp. 219–244.
Published
2025-07-01
How to Cite
Peterson, D. (2025). NAVIGATING RISK BY USING A MULTIFACETED APPROACH TO CONTINGENCY PLANNING FOR BLACK SMES IN SOUTH AFRICA’S AUTOMOTIVE INDUSTRY DURING COVID-19. Journal of Management : Small and Medium Enterprises (SMEs), 18(2), 871-884. https://doi.org/10.35508/jom.v18i2.20276
Section
Articles
