The effect of Regulatory Compliance on SMMEs’ Access to Government Support during Covid 19 Lockdown: the Case of King Cetshwayo District in KwaZulu Natal

Sheunesu Zhou (), Mandla Mfundo Masuku (), Tendai Chimucheka () and Ayansola Olatunji Ayandibu ()
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Sheunesu Zhou: University of Zululand, South Africa
Mandla Mfundo Masuku: University of KwaZulu Natal, South Africa
Tendai Chimucheka: University of Fort Hare, South Africa
Ayansola Olatunji Ayandibu: University of Zululand, South Africa

Eurasian Journal of Business and Management, 2023, vol. 11, issue 2, 78-90

Abstract: This paper analyzes the impact of non-compliance on distribution of government support to SMMEs in the King Cetshwayo district in South Africa during the Covid 19 lockdown. We use qualitative data from semi-structured interviews and thematic content analysis to analyze the experiences and perceptions of government employees and political representatives who were involved in distributing the goods or services. Our findings show that compliance and negative attitudes towards compliance requirements were a hindrance to government interventions to ameliorate the Covid 19 pandemic induced recession. The top-down structure of the compliance system also contributed to challenges as local, national, and regional regulators were not coordinated with each other. We therefore recommend alignment of compliance requirements across the distinct levels of government (regulators), and improvement in efficiency of the regulatory system. A complete online system can be used and made accessible to local regulators to improve service delivery. In addition, compliance requirements can be relaxed during times of crises to enable access to government support by SMMEs.

Keywords: Compliance; Government Intervention; Regulation; Qualitative (search for similar items in EconPapers)
Date: 2023
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