An assessment of the impacts of funding and support provided by the DSAC during the COVID-19 pandemic on beneficiaries from 1 April 2020 to 31 March 2021: Preliminary beneficiary survey analysis

Overview

The Coronavirus Disease 2019 (COVID-19) has had wide-ranging impacts on the Creative and Cultural Industries (CCIs) and sports sector. The Department of Sports, Arts and Culture (DSAC), like other national departments, responded to provide some level of financial relief to the vulnerable enterprises and individuals in the CCIs and sports sector. This study focuses on examining the DSAC COVID-19 relief measures. Specifically, the focus is on assessing the extent and nature of COVID-19 impacts on beneficiaries and responses to the pandemic, examining who benefitted from the support provided, how beneficiaries became aware of the support, the perceived impacts of the support provided, other types of support accessed and what types of support are needed in the future. In terms of the methodology, a three-phased approach is adopted: Phase 1 is a desktop study, Phase 2 is a beneficiary survey and Phase 3 is a focus group discussion with DSAC officials involved with administering the relief fund. This preliminary report is based on initial findings emanating from interviews with 252 beneficiaries as per beneficiary information/ contact details provided by the DSAC. A final report will be submitted once further surveys are completed that target more beneficiaries (especially those receiving support more recently) and engagements with DSAC officials to integrate their perceptions, experiences and reflections.

In terms of the profile of the respondents, this preliminary analysis reveals that respondents were generally from the CCIs (mainly from the performance and celebration domain), were established (operating for more than 5 years), were either freelancers or owners of a business, were registered, and were mainly based in one of the more urbanised and populated provinces (Gauteng, Western Cape and KwaZulu-Natal). In terms of the respondents’ socio-demographic profiles, most were Black Africans followed by Whites, were between the ages of 31 and 40 years and were educated, with almost equal proportions of males and females. In terms of their employment status, most respondents were self-employed or employed on a part-time basis, more so at the time of the interview compared to before the pandemic, which indicates increased vulnerability. This was also evident in that some respondents saw a decline in income from before the pandemic to the time of the interview.

Almost all respondents indicated that they experienced disruptions with the main one being a decrease in sales/ demand for goods and services. Several and multiples types of strategies were used to cope with the disruptions experienced that reflected the responsiveness of the CCIs and the sports sector. The need to increase demand and consumption of goods and services in these sectors is underscored to ensure long-term sustainability.

The results reveal that diverse types of businesses benefitted from the funding. The amount received varied considerably from R500 to more than R100 000, and the grants were used for multiple purposes. Notably also, some of the funds were used to support existing jobs and created new jobs, indicating that impacts were realised beyond individual beneficiaries. The main challenges were in relation to the amount of funding received, the lengthy as well as complicated/ confusing process, delays and inadequate communication. Respondents found out about the support from multiple sources, indicating the importance of having a multi-pronged communication strategy. The results from the preliminary analysis indicate that the DSAC support, although support for more funding remains, was well received and assisted to buffer the negative impacts of the COVID-19 pandemic. The DSAC was identified as the main organisation well-positioned to provide future support.

The reliance on public funding is evident, which is of concern given limited stated resources. The expectation of greater financial support is unlikely to be feasible given limited state funding available and that multiple socio-economic priorities (including the health concerns related to the pandemic) persist. The challenge, therefore, is to develop appropriate policies as well as interventions and programmes in a financially resource scarce environment to provide the support needed so that businesses can be sustainable and more resilient to deal with future changes/ disruptions. Key recommendations forwarded include have simpler processes and requirements that need to be streamlined for future funding; improving communication prior to, during  and after the application process; and addressing administrative blockages to deal with delays and to improve turnaround times. Research recommendations are also forwarded that include updating the report based on further research that includes beneficiaries that were not contacted thus far and undertaking a needs assessment for the CCIs and sports sector to focus on recovery and resilience to deal with future disruptions.