The effect of Russia- Ukraine war on the South African small businesses environment

Abstract

The war between Russia and Ukraine has enormously affected the South African business environment. It has slowed economic growth, caused many uncertainties in companies, and contributed to an increase in several commodities. Research has indicated that the global economy was projected to grow well below the outcomes expected before the war – at a modest 3.1% in 2022, before slowing to 2.2% in 2023 and recovering moderately to a still subpar 2.7% pace in 2024. Therefore, the objective of this article is to analyze the effect of the war between Russia and Ukraine on the South African business environment, with the aim of developing a sustainable business model for small businesses operating in the context of global challenges. The research used qualitative approach with interpretivism research paradigm, to analyze researched articles and credible websites on the aspects of Volatility, Uncertainty, Complexity, and Ambiguity (VUCA). Therefore, the VUCA leadership theory was also employed to develop a model that would assist small business owners to anticipate and adapt to changes quickly. The research findings indicated that most small business owners cannot think strategically to develop creative solutions to the challenges that affect their businesses. Therefore, several small businesses are struggled to withstand the effect of the Russian- Ukraine war on their business operations. Therefore, this article contributes to a different dimension of understanding the volatility of a business environment in the face of global challenges. Furthermore, this article expands on strategies that have been developed to enable small businesses to cope with global challenges.