ASSESSING THE IMPACT OF LOAD SHEDDING AND COPING STRATEGIES ON BUSINESS OPERATIONS OF SMALL-SCALE ENTERPRISES: MASALA MARKET IN NDOLA, ZAMBIA

Abstract

Frequent prolonged load shedding continues to impact individuals and businesses. Small-Scale Enterprises have not been spared. This research sought to investigate the impact of electricity demand and load shedding on the operations of the small-scale enterprises in Zambia using the case study of the small-scale enterprises operating at the Ndola City Council’s Masala Market. To achieve the main aim, the research sought to establish the frequency of load shedding that small- scale enterprises face during business hours from 0800 hours to 1700 hours, to investigate the ways in which electricity load shedding affects small-scale enterprises in Zambia. A further aim was to establish coping strategies of small-scale enterprises to remain operational during the periods of load shedding, and to recommend the best ways possible that small-scale enterprises can employ to overcome the effects of electricity load shedding. The pragmatism research philosophy, the explanatory research design, survey research strategy and the mixed method approach were adopted. The concurrent mixed approach was adopted. The target population consisted of managers and/or business owners of small-scale enterprises at the Masala Market. Simple random sampling and purposive sampling were employed.

The study employed primary data collection methods namely survey questionnaire, in-depth interviews and observations whilst secondary data was collected using document review. Data were analysed using descriptive, Chi-square, correlation and content analyses. These results indicate that the small-scale enterprises at Masala Market frequently experienced load shedding during business hours (0800 hours-1700 hours) extending from 5 hours up to more than ten hours in a day. The results also showed that load shedding caused significant negative impacts on the operations of the small-scale enterprises at the Masala Market. The results showed that the majority of the small-scale enterprises (74.2%) had backup for load shedding. The results also showed that the mostly employed coping strategy by the small-scale enterprises at the Masala Market is change of working hours in relation to load shedding, followed by employment of part time employees and temporal relocation to unaffected areas.

However, the study established that for the majority of the small-scale enterprises (53.6%), most of the coping strategies employed were less effective. The main conclusion reached was that the frequent prolonged load shedding in Zambia significantly affects and disrupts business operations particularly of small-scale enterprises. In addition, forming partnerships with neighbouring businesses that have access to reliable power supply can be beneficial to the small-scale enterprises. Sharing resources during load shedding periods can help mitigate the negative effects and ensure continuity of operations of the firms. The small-scale enterprises were recommended to consider investing in machines and equipment that use less energy or hybrid machines that are compatible with both electricity and solar. This study contributes to theory, policy and practice.