Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic

Globally, the COVID-19 pandemic lockdown regulations caused enormous changes in all business sectors because many businesses were not allowed to operate. Only a few were regarded as essential businesses, such as pharmacies and grocery shops, and allowed to operate. Lockdown regulations negatively a...

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Main Authors: Zamaswazi Pretty Cele, Ndivhuho Tshikovhi
Format: Article
Language:English
Published: Research and Postgraduate Support Directorate 2023-08-01
Series:African Journal of Inter-Multidisciplinary Studies
Subjects:
Online Access:https://journals.nust.na/index.php/ajims/article/view/1180
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author Zamaswazi Pretty Cele
Ndivhuho Tshikovhi
author_facet Zamaswazi Pretty Cele
Ndivhuho Tshikovhi
author_sort Zamaswazi Pretty Cele
collection DOAJ
description Globally, the COVID-19 pandemic lockdown regulations caused enormous changes in all business sectors because many businesses were not allowed to operate. Only a few were regarded as essential businesses, such as pharmacies and grocery shops, and allowed to operate. Lockdown regulations negatively affected the South African informal sector. As a result, it is difficult to provide accurate statistics on the entrepreneurs affected by the COVID-19 pandemic. There are no official statistics from the informal sector. This paper aims to examine how the informal sector was affected by the lockdown down restrictions within South Africa. The paper adopts a systematic review methodology using Google Scholar and Web of Science or Scopes to search for articles on informal entrepreneurship, COVID-19, and South Africa to draw a conclusion from the analysed data. The findings indicated that most of the businesses in the informal sector were negatively affected, including workers because some of them lost their jobs and others did not receive their usual salaries due to limited working hours. There were disruptions in the supply chain and pricing of goods and services, and people could not have sustained their income during the lockdown in South Africa. In conclusion, the informal sector is one of the most vulnerable sectors that lacks access to appropriate risk management structures, and most people live on a hand to mouth basis. COVID-19 has negatively affected the informal sector, mainly through distribution and marketing systems.
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spelling doaj.art-94697bcd8cf1454f99c3c17e51efe9af2023-09-17T11:24:08ZengResearch and Postgraduate Support DirectorateAfrican Journal of Inter-Multidisciplinary Studies2663-45972663-45892023-08-015110.51415/ajims.v5i1.1180Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic Zamaswazi Pretty Cele0Ndivhuho Tshikovhi1Durban University of Technology, South AfricaDurban University of Technology, South Africa Globally, the COVID-19 pandemic lockdown regulations caused enormous changes in all business sectors because many businesses were not allowed to operate. Only a few were regarded as essential businesses, such as pharmacies and grocery shops, and allowed to operate. Lockdown regulations negatively affected the South African informal sector. As a result, it is difficult to provide accurate statistics on the entrepreneurs affected by the COVID-19 pandemic. There are no official statistics from the informal sector. This paper aims to examine how the informal sector was affected by the lockdown down restrictions within South Africa. The paper adopts a systematic review methodology using Google Scholar and Web of Science or Scopes to search for articles on informal entrepreneurship, COVID-19, and South Africa to draw a conclusion from the analysed data. The findings indicated that most of the businesses in the informal sector were negatively affected, including workers because some of them lost their jobs and others did not receive their usual salaries due to limited working hours. There were disruptions in the supply chain and pricing of goods and services, and people could not have sustained their income during the lockdown in South Africa. In conclusion, the informal sector is one of the most vulnerable sectors that lacks access to appropriate risk management structures, and most people live on a hand to mouth basis. COVID-19 has negatively affected the informal sector, mainly through distribution and marketing systems. https://journals.nust.na/index.php/ajims/article/view/1180COVID-19 pandemicentrepreneurs’ disruptioninformal sector lockdown restriction
spellingShingle Zamaswazi Pretty Cele
Ndivhuho Tshikovhi
Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic
African Journal of Inter-Multidisciplinary Studies
COVID-19 pandemic
entrepreneurs’ disruption
informal sector
lockdown restriction
title Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic
title_full Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic
title_fullStr Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic
title_full_unstemmed Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic
title_short Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic
title_sort review of the lockdown regulations impact on informal businesses during the covid 19 pandemic
topic COVID-19 pandemic
entrepreneurs’ disruption
informal sector
lockdown restriction
url https://journals.nust.na/index.php/ajims/article/view/1180
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