The effect of Load Shedding on the performance of Small-scale restaurants in Mthatha, South Africa – An assessment

Small enterprises in South Africa play a critical role in job creation, driving economic growth and addressing the historical economic injustices. However, the scheduled power outages implemented in South Africa due to electricity supply constraints have placed a significant operational burden on these enterprises, particularly within the restaurant sector, which is highly dependent on consistent electricity supply. The study examined the impact of load shedding on the operational and financial performance of small-scale restaurants in Mthatha, South Africa. A quantitative, explanatory research design was used. Data were collected through a survey, using a self-administered questionnaire distributed to 53 small-scale restaurants. Fifty-one valid responses were received and analysed with descriptive and inferential statistics using Microsoft Excel and SmartPLS4 statistical software. The results revealed that load shedding has a negative impact on both the profitability and productivity of small-scale restaurants. However, these effects were found to be statistically insignificant. Given that South Africa’s electricity challenge does not seem to have a near-future solution, it is crucial to understand its impact on small enterprises. Although the effects were not statistically significant, the negative effects warrant the need for long-term, sustainable energy alternatives, tailored to the needs of small enterprises in electricity-dependent sectors, such as hospitality. State the contribution of this study to scholarship.