The effects of extended water supply disruptions on the operations of SMEs

Abstract

The objective of this study was to analyse the effects of extended water supply disruptions on SMEs, in relation to returns, profitability and expenditure patterns. It investigated the impact of regular and/ or extended water supply disruptions on the operations of small and medium enterprises (SMEs) in Maun, Botswana. Various studies on the development of SMEs have focused exclusively on financial access and inclusion, licensing and regulatory requirements, as well as the development of the skills of workers and owners of SMEs. Consequently, there is limited academic literature on the key issue of critical infrastructure and its impact on the operations of SMEs. This study aimed to assess the effect of extended water supply disruptions as an underlying factor in the slowing of the SME growth and development rate. The results show that the majority of the respondents experiencing extended water disruptions reported that their monthly returns and profits had been negatively affected. The results of this study give a better perspective on the impact of infrastructural weaknesses on the operations, growth, competitiveness and profitability of SMEs in developing countries.

Keywords: SMEs, water supply, profitability, competitiveness