Start-up Awareness and Access toFinance: The Case of South African SMEs

2019 ◽  
Vol 118 (10) ◽  
pp. 391-400
Author(s):  
N H Bamata ◽  
K K Govender
Keyword(s):  
South Africa ◽  
South African ◽  
Business Strategy ◽  
Study Finding ◽  
Capital City ◽  
Access To Finance ◽  
External Finance ◽  
Main Challenge ◽  
Start Up ◽  
Start Ups

Start-up entrepreneurs in South Africa do not move from the stage of existence and survival to growth to maturity/ In order for Start-up businesses to have a competitive advantage, they have to grow beyond the survival stage and keep on growing. Despite the availability of external finance, access to finance from banks has been identified as the main challenge to the establishment and growth of SME Start-ups in South Africa. The aim of this study is toinvestigate the determinants of start-up awareness to improve access to finance from banks by Start-up entrepreneurs in Pietermaritzburg, the capital city of KwaZulu-Natal province in South Africa. Data was collected through self-administrated questionnaires from a random sample of 253 respondents being members of the Chamber of Commerce in the capital city of one of the largest provinces in South Africa.The results from inferential statistical analysis revealed that start-up awareness factors such as conducting a feasibility study, finding a good location, knowing the amount of seed capital needed, developing a business strategy, a business plan, and business model as well as the source of seed capital, are significant determinants of access to bank financing by start-up entrepreneurs.Thus, entrepreneurs should understand the determinants of Start-up awareness in order to improve their ability to access bank finance.

scholarly journals An empirical study of optimal access to external finance by small and medium enterprise start-ups

2019 ◽  
Vol 17 (3) ◽  
pp. 242-258 ◽  
Author(s):  
Herman Bamata ◽  
Krishna K. Govender ◽  
Ziska Fields
Keyword(s):  
South Africa ◽  
Empirical Study ◽  
Statistical Analyses ◽  
Management Skills ◽  
External Finance ◽  
Small And Medium Enterprise ◽  
Start Up ◽  
Medium Enterprise ◽  
Start Ups

The aim of this study is to empirically examine the relationships between the determinants of start-up SME success, namely start-up awareness and management skills, and the finance suppliers. This study has proposed a framework that improves the ability of start-up SMEs to access external finance. Through descriptive and inferential statistical analyses of data from a survey of a sample of SMEs in South Africa, it was ascertained that the framework which maps the entrepreneur’s start-up awareness and requisite management skills with the finance providers’ requirements will make up a tool to assist start-up SMEs in developing optimal financing options to grow their businesses.

Gendered Lending Practices: Enabling South African Women Entrepreneurs to Access Start-Up Capital

2014 ◽  
Vol 22 (03) ◽  
pp. 313-330 ◽  
Author(s):  
Evelyn Derera ◽  
Pepukayi Chitakunye ◽  
Charles O'Neill ◽  
Amandeep Tarkhar-Lail
Keyword(s):  
South Africa ◽  
South African ◽  
Women Entrepreneurs ◽  
Financial Institution ◽  
African Women ◽  
Future Research ◽  
Snowball Sampling ◽  
Start Up ◽  
South African Women ◽  
Depth Interviews

This study explores gendered lending and marketing practices of start-up capital to women entrepreneurs in South Africa. A multi-method research design, comprising of 6 in-depth interviews with experts, and a survey of 50 women entrepreneurs was adopted using convenience and snowball sampling techniques, respectively. The findings revealed that women entrepreneurs are experiencing gendered discriminatory practices embedded in lending practices used by financial institutions, thereby discouraging them to venture into non-traditional industries. Whilst financial providers may know their products well, many emerging women entrepreneurs in South Africa may find it difficult and costly to obtain information on the thousands of financial products available. Hence, women entrepreneurs resort to taking greater risks than necessary in order to get their businesses off the ground. Educating women on financial matters is extremely important if South Africa is to benefit fully from the untapped entrepreneurial talent that women possess. The study adds voice to the discriminatory lending practices faced by women entrepreneurs in developing countries. Future research could explore the feasibility of establishing a financial institution which caters specifically for the needs of women.

scholarly journals Plants Used by Bapedi Traditional Healers to Treat Asthma and Related Symptoms in Limpopo Province, South Africa

2018 ◽  
Vol 2018 ◽  
pp. 1-33 ◽  
Author(s):  
Sebua Silas Semenya ◽  
Alfred Maroyi
Keyword(s):  
South Africa ◽  
South African ◽  
Study Finding ◽  
Traditional Healers ◽  
Limpopo Province ◽  
Herbal Remedies ◽  
Face To Face ◽  
Sclerocarya Birrea ◽  
Time In Literature ◽  
Herbal Therapies

To the best of our knowledge there are presently no ethnobotanical surveys focusing on the utilisation of herbal remedies for asthma in South Africa. The present study is therefore an attempt to fill this gap in knowledge. A total of 140 Bapedi traditional healers (THs) practicing in the Capricorn, Sekhukhune, and Waterberg districts of the Limpopo Province (South Africa) were queried using semistructured questionnaires, supplemented by field observations during face-to-face interview. A total of 104 medicinal plant species (92 indigenous and 12 exotics) belonging to 92 genera, distributed across 54 botanical families, mostly the Asteraceae and Fabaceae (18.5%, for each) as well as Malvaceae (12.9%), were used as antiasthmatics and related symptoms by these THs. Most of the plants were trees and herbs (37.5%, for each), with root (57%), leaf (15.8%), and bark (7.5%), respectively, being the saliently used parts for preparation of remedies.Clerodendrum ternatum,Cryptocarya transvaalensis,Lasiosiphon caffer,Enicostema axillare,Mimusops obovata,Sclerocarya birrea, andStylochaeton natalensiswere widely used and valued by all THs across the surveyed districts. Furthermore, these taxa also scored both the highest use value and fidelity level indexes as asthma therapies. Overall, the larger number of species documented in the present study is recorded for the first time in literature as asthma and/or related symptoms remedies. Our study finding generally contributes towards an establishment of South African database of herbal therapies used traditionally against these conditions.

scholarly journals Strategic positioning of EAP in South African workplaces

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
M. G. Matlhape
Keyword(s):  
South Africa ◽  
South African ◽  
Business Strategy ◽  
Employee Satisfaction ◽  
Business Processes ◽  
Chain Model ◽  
Employee Assistance ◽  
Strategic Positioning ◽  
And Performance ◽  
A Company

Two phenomena are having a profound effect on management and industry in the 21st century. The first one is the increasing rate and depth of competition locally, regionally, and globally, and the consequent increase in focus on achieving competitiveness by companies. The second phenomenon is the increasing appreciation of the importance of employees in assisting the company to gain a competitive advantage over its competitors. Employee Assistance Programmes have been used as part of the business strategy to enhance employee functioning, loyalty, and performance in organisations around the world for a good part of the 20th century. In South Africa this service did not gain much momentum until the 1980. Despite the growth of EAP in South Africa, however, in most cases it still remains on the periphery of real business activities and is often regarded as a "nice to have" rather than as a business imperative. The location of EAP within a company is very important in determining its impact within the organisation. Because of EAPs capacity to impact on both individual employees and the organisation as its primary client, it has potential to make a great impact in organisations' business processes, where these interface with individual output and wellbeing. A service-profit-chain model was introduced as a link between employee satisfaction and company profitability. This article gives an in-depth focus on EAP and the important role it can play in achieving employee satisfaction.

scholarly journals Development and Access to Finance of Small and Medium-Sized Enterprises in Mongolia

2020 ◽  
pp. 265-294
Author(s):  
Gan-Ochir Doojav ◽  
Davaajargal Luvsannyam ◽  
Bilguun Sukhbaatar ◽  
Bilguunzul Sodnomdarjaa ◽  
Tsolmon Otgonbat ◽  
...  
Keyword(s):  
Economic Growth ◽  
Building Blocks ◽  
Business Environment ◽  
Financial Inclusion ◽  
Capital City ◽  
Medium Size ◽  
Access To Finance ◽  
External Finance ◽  
Reform Strategy ◽  
Lending Rate

This chapter presents a recent survey on the development and accessibility for finance of small and medium-size enterprises (SMEs) in Mongolia. The survey covers a sample of 1922 SMEs from Ulaanbaatar, the capital city, and 21 provinces. We find that banks and local government administrations are the most supportive institutions for SME development. Political instability, corruption, and labour supply, a high lending rate, short maturity loans, and service fees are perceived as the major obstacles that SMEs face in the business environment. Our results also suggest that SMEs in Mongolia are less likely to have access to external finance because of tight credit condition, potentially explaining the lack of SME growth. Implementing country-specific reform strategy for SME development covering key building blocks is needed to promote SME financial inclusion and facilitate SMEs to contribute to the economic growth.

scholarly journals South African firm-level evidence of the links between finance and efficiency

2012 ◽  
Vol 5 (1) ◽  
pp. 271-286
Author(s):  
Waldo Krugell ◽  
Marianne Matthee
Keyword(s):  
South Africa ◽  
South African ◽  
Access To Finance ◽  
Firm Level ◽  
The World Bank ◽  
Using Data ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
Lower Capacity ◽  
Different Sources

Small and medium-sized enterprises are often seen as drivers of economic growth and development by generating employment opportunities. However, for SMEs to be successful they need finance. Access to finance has been found to be a major obstacle to SMEs’ ability to do business in South Africa. This paper takes a closer look at firms, their access to finance and output per worker in South Africa, by using data from the World Bank Enterprise Survey 2007. The results show that firms that are financially constrained are more vulnerable to shocks and competition, and are weaker contributors to employment creation and growth. These firms are typically small and less established. They hold less inventory, have lower capacity utilisation and are unlikely to be exporters or to introduce new products in response to competition. The results from the regression model confirm that access to finance and different sources of finance are drivers of productivity at firm level.

scholarly journals Reconceptualising undergraduate entrepreneurship education at traditional South African universities

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Manduth Ramchander
Keyword(s):  
South Africa ◽  
South African ◽  
Secondary Data ◽  
Entrepreneurship Education ◽  
Higher Education System ◽  
Postgraduate Level ◽  
South African Universities ◽  
Managerial Implications ◽  
Value Add ◽  
Start Ups

Orientation: The relatively high number of unemployed graduates in South Africa is a major cause for concern. Entrepreneurial start-ups have been heralded as the panacea to the unemployment challenge.Research purpose: The aim of this study was to ascertain how entrepreneurship education, at traditional South African universities, measured against existing entrepreneurship education frameworks.Motivation for the study: Despite a plethora of entrepreneurship education initiatives, the South African higher education system fails to produce sufficient entrepreneurs; hence, the need to explore how entrepreneurship education is structured.Research design, approach and method: The research design was exploratory and both quantitative and qualitative in nature. The population comprised the eleven traditional universities in South Africa and all of them were included in the study. Secondary data was obtained from the respective universities’ websites. The search sequence in the websites were as follows: Faculty of commerce/Management Sciences, Year/handbook, undergraduate/postgraduate programmes. The word ‘entrepreneurship’ was also used as a keyword to search within the university website.Main findings: The findings revealed some entrepreneurship modules, with low total credit value in relation to total programme credit value, at the undergraduate level and specialisation at the postgraduate level with some form of centre or incubator initiatives. It was also found that little attention is given to the development of entrepreneurial skills such as perseverance, resilience and self-efficacy.Practical/managerial implications: The significance of this article lies in its potential to guide the reconceptualisation of entrepreneurship education at South African universities.Contribution/value-add: This study integrates an existing framework and model to reconceptualise the undergraduate entrepreneurship programme. The reconceptualised structure entails a programme where modules from other disciplines are integrated into an entrepreneurship programme as opposed to the current structure where entrepreneurship modules are integrated into other career-focussed programmes.

Capital Markets Union

2018 ◽  
Author(s):  
Erik PM Vermeulen
Keyword(s):  
Economic Growth ◽  
Capital Markets ◽  
Lower Cost ◽  
Access To Finance ◽  
Start Up ◽  
Capital Markets Union ◽  
Successful Innovation ◽  
Start Ups ◽  
The Eu

The Capital Markets Union (CMU) aims to strengthen capital markets and investments in the EU. The rationale behind such a union is that it is necessary to provide businesses, particularly start-up companies, with a greater choice of funding at lower cost. More generally, it is assumed that, in the long-term, greater choice increases access to finance and fosters economic growth. This chapter argues that although the CMU may be a necessary step, it has to be situated in a much broader discussion about how to create successful innovation ecosystems. Such an approach highlights the sector-specific needs of start-ups (and scale-ups) and the importance of mobilizing other players, particularly established corporations.

scholarly journals Contribution of support and incentive programs to entrepreneurial orientation and start-up culture in South Africa

2003 ◽  
Vol 6 (3) ◽  
pp. 514-528 ◽  
Author(s):  
Marius Pretorius ◽  
Jurie Van Vuuren
Keyword(s):  
South Africa ◽  
South African ◽  
Entrepreneurial Orientation ◽  
African Culture ◽  
Target Groups ◽  
Incentive Programs ◽  
Entrepreneurial Culture ◽  
Start Up ◽  
Key Issues

This paper discussed the role of an entrepreneurial orientation (EO) and start-up culture to enhance economic development. It investigates the proposition that the South African culture is conducive to EO. Secondly, this paper investigates the available programs from an entrepreneurial culture perspective. Programs are categorised to delineate their different focuses. Key issues reported include the program focus, the level of venture development aimed at and their target groups. Finally it questions the contribution of these programs to entrepreneurial culture and suggests remedies. The paper concludes that despite the number of different programs that exist, the concept of entrepreneurial culture to improve EO is not addressed.

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