scholarly journals What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank Enterprise Surveys

2015 ◽  
Vol 46 (2) ◽  
pp. 15-27 ◽  
Author(s):  
A. M. Mthimkhulu ◽  
M. J. Aziakpono
Keyword(s):  
South Africa ◽  
World Bank ◽  
Small And Medium Enterprises ◽  
Negative Effects ◽  
Access To Finance ◽  
The World Bank ◽  
Enterprise Surveys ◽  
Medium Enterprises ◽  
Medium Firms ◽  
Simple Count

The growth of Micro, Small and Medium Enterprises (MSMEs) is often regarded as a solution to persistent unemployment in developing countries. Studies have shown that access to finance is the most serious obstacle to MSMEs’ growth. This paper investigates key obstacles to the growth of MSMEs in South Africa using the World Bank Enterprise Surveys of 2003 and 2007. Two approaches are used to determine the key obstacles. The first improves on the simple count-of-ratings method used by many researchers. The second estimates the effects of obstacles on growth through sequential multivariate regressions based on the Growth Diagnostics framework by Hausmann, Rodrik & Velasco (2005) and identifies two levels of obstacles’ intensities: binding constraints with negative and significant effects and constraints with notable effects whose negative effects are significant but less than the binding. From both count- and regression-based analyses, access to finance is a relatively less important obstacle. The count-based analysis finds crime to be the top obstacle. In the regressions, ‘courts’, which refers to the efficacy of the legal system and thus related to crime, is binding. Electricity and transportation of goods are the constraints with notable effects.

scholarly journals What characterises high-growth firms in South Africa? Evidence from World Bank Enterprise Survey

2016 ◽  
Vol 47 (4) ◽  
pp. 71-81
Author(s):  
A. Mthimkhulu ◽  
M. Aziakpono
Keyword(s):  
South Africa ◽  
World Bank ◽  
Small And Medium Enterprises ◽  
High Growth ◽  
The World Bank ◽  
Growth Firms ◽  
Medium Enterprises ◽  
World Bank Enterprise Survey ◽  
Enterprise Survey ◽  
New Jobs

In the past two decades, considerable efforts have been made to promote small and medium enterprises as a catalyst for job creation in many countries, including South Africa. However, globally a growing body of evidence shows that only a small segment of small and medium enterprises in an economy accounts for 50 to 70% of net new jobs. Using the World Bank Enterprise Survey and logit and quantile regressions, this paper empirically explores the characteristics of high growthfirms in South Africa. The study finds that firms that are less than 6 years create more jobs than the average firm in the sample. The results further suggest that the typical high-growth firms are black-owned.

Determinants of credit access of small and medium enterprises in emerging economies: evidence from the World Bank enterprise surveys

2021 ◽  
Vol 12 (3) ◽  
pp. 1
Author(s):  
Rafael De Freitas Souza ◽  
Patrícia Belfiore ◽  
Nuno Manoel Martins Dias Fouto ◽  
Marco Aurélio Dos Santos ◽  
Luiz Paulo Fávero
Keyword(s):  
World Bank ◽  
Emerging Economies ◽  
Small And Medium Enterprises ◽  
Credit Access ◽  
The World Bank ◽  
The World ◽  
Enterprise Surveys ◽  
Medium Enterprises

Determinants of credit access of small and medium enterprises in emerging economies: evidence from the World Bank enterprise surveys

2021 ◽  
Vol 12 (3) ◽  
pp. 266
Author(s):  
Marco Aurélio Dos Santos ◽  
Luiz Paulo Fávero ◽  
Nuno Manoel Martins Dias Fouto ◽  
Patrícia Belfiore ◽  
Rafael De Freitas Souza
Keyword(s):  
World Bank ◽  
Emerging Economies ◽  
Small And Medium Enterprises ◽  
Credit Access ◽  
The World Bank ◽  
The World ◽  
Enterprise Surveys ◽  
Medium Enterprises

Conservation servitudes in South Africa

2020 ◽  
Vol 26 ◽  
pp. 105-133
Author(s):  
Marthán Theart ◽  
Kirstin Meiring
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Insolvency Law ◽  
The Social ◽  
Legal Challenges ◽  
African Context ◽  
Medium Enterprises

Small and Medium Enterprises (SMEs) play a significant role in the economy of developing countries. Although SMEs contribute to economic growth, they still struggle with access to finance and cash flow constraints. The coronavirus (COVID-19) pandemic worsened this situation, making it necessary for countries to develop rescue regimes suitable for financially distressed SMEs. Focusing on Nigeria and Kenya – which represent the largest economies in West Africa and East Africa respectively – this paper critically sheds light on the socio-legal challenges posed by extant insolvency law regimes in both countries and their unsuitability for driving SME rescue. As a conversation starter in the African context, the authors identify transplanted concepts and structures which make SME rescue a futility, in the light of local circumstances, while proposing solutions tailored to the social milieu of both countries.

scholarly journals Factors Affecting Small and Medium Enterprises’ Financial Sustainability in South Africa

2021 ◽  
Vol 3 (1) ◽  
pp. 103-117
Author(s):  
Odunayo Olarewaju ◽  
Thabiso Msomi
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Small Businesses ◽  
Quantitative Research ◽  
Small And Medium Enterprises ◽  
Multivariate Regression Analysis ◽  
Financial Sustainability ◽  
Access To Finance ◽  
Factors Affecting ◽  
Medium Enterprises

The dwindling growth of small businesses and their rate of failure in South Africa has been traced to poor financing. Thus, the factors affecting the financial sustainability of small and medium-sized enterprises in South Africa are examined in this study. Using purposive sampling, data were collected from 310 respondents, however six were incorrectly completed. The analysis was based on data collected from 304 respondents which cut across owners and/or managers from small and medium construction, manufacturing, retail, and agricultural enterprises. A quantitative research design that falls under the positivist paradigm was used. Specifically, through a descriptive and multivariate regression analysis, it was found that financial awareness, budgeting, accounting skills, and access to finance have positive and significant effects on the financial sustainability of SMEs with all the variables, having 0.005 probability values, respectively. Out of all the variables examined, budgeting and access to finance have the largest absolute values of 0.425 and 0.373, respectively. Thus, it was concluded that workshops, training, and seminars to improve the financial literacy of small and medium enterprises should be organised. This will improve owner’s ability to deploy the accounting and budgeting skills and they will be exposed to meeting loan criteria and conditions from financial institutions. Also, adequate funds should be allocated to cater for the regular training and development of small business owners using the services of financial experts.

scholarly journals The consequences of fiscal load increase for entrepreneurship: Difference-in-differences approach

2020 ◽  
Vol 36 (4) ◽  
pp. 579-600
Author(s):  
Evguenii Zazdravnykh ◽  
Keyword(s):  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Activity ◽  
Negative Effects ◽  
Difference In Differences ◽  
New Business ◽  
Load Increase ◽  
Medium Enterprises ◽  
Medium Firms ◽  
Dramatic Fall

This study investigates the effect of a twofold rise in fixed payments on sole-proprietors and entrepreneurial activity in 2013 and a twofold decline in these payments in 2014. The paper considers consequences of this decision for various facets of entrepreneurship: the presence of small and medium enterprises in an economy, the new business entries, and employment in small and medium enterprises. To find a solution to this problem, we use a difference-indifferences method of policy evaluation. Results of this analysis show that because of a sharp rise in fixed payments, the number of sole-proprietors increased and there was a dramatic fall in the number of new businesses. In addition, employment in small and medium firms also decreased by this decision to raise payments. The decrease in fixed payment in 2014 could not compensate for the negative effects of the previous year among small businesses. Despite various measures to support entrepreneurship, new business entries continued to decline, although the speed of this decline decreased after 2013. Thus, the decrease in fixed payments became an incentive to compensate only some decrease over 2013. The results show that entrepreneurs have a very rapid response to fiscal load increase and have a slow response to decreases in taxation.

Opportunities for accelerating labor productivity growth: The role of small and medium enterprises

2020 ◽  
pp. 98-114
Author(s):  
Evguenia V. Bessonova ◽  
Alexander G. Morozov ◽  
Natalia A. Turdyeva ◽  
Anna N. Tsvetkova
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Small And Medium Enterprises ◽  
Growth Potential ◽  
Business Climate ◽  
Labor Productivity Growth ◽  
Positive Effects ◽  
Low Efficiency ◽  
Medium Enterprises ◽  
Medium Firms

The paper considers necessary conditions for acceleration of labor productivity growth in Russia. Based on micro data, as well as aggregate data, the paper quantifies the contribution of small and medium firms to labor productivity growth. It shows that mere increase of the number of small and medium enterprises is not as important for positive effects of these programs, as qualitative improvements: development of favorable environment for growth, which is largely determined by business climate. Accelerating productivity growth involves redistribution of labor and capital from inefficient to efficient enterprises. In particular, it is necessary to create conditions, which allow a firm to grow after it enters the market instead of stagnating as a small firm with low efficiency. At the same time, it is necessary for ineffective firms, which exhausted their growth potential, to have an opportunity to exit the market easily leaving resources including labor to fast-growing companies.

THE ACCESS TO GOVERNMENT FINANCIAL SUPPORT THROUGH LEGAL CHANNELS OF SMALL AND MEDIUM ENTERPRISES IN FOUR ASIA PACIFIC COUNTRIES

2020 ◽  
Vol 9 (2) ◽  
pp. 298
Author(s):  
Muhamad Marwan
Keyword(s):  
Financial Support ◽  
Small And Medium Enterprises ◽  
Mediation Effect ◽  
Asia Pacific ◽  
Survey Questionnaire ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

The aim of this study is to determine the impact of networking on SME’s ability to access government financial support through legal channels in Asia Pacific. This study is quantitative in nature in which the data has been gathered from 281 employees and managers working in SMEs through survey questionnaire. The SEM technique was utilised for the purpose of analysing and testing the mediation effect. The study found that there is a partial mediation of government financial support through legal channels among the relationship between networking with officers and access to finance. This study is restricted to the SMEs operating in the region of Asia Pacific.

scholarly journals Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia

2021 ◽  
Vol 14 (7) ◽  
pp. 286
Author(s):  
Betgilu Oshora ◽  
Goshu Desalegn ◽  
Eva Gorgenyi-Hegyes ◽  
Maria Fekete-Farkas ◽  
Zoltan Zeman
Keyword(s):  
Small And Medium Enterprises ◽  
Multiple Linear Regression Model ◽  
Financial Inclusion ◽  
Research Approach ◽  
Supply Side ◽  
Access To Finance ◽  
Secondary Sources ◽  
Medium Enterprises ◽  
Supply Side Factors ◽  
Positive Effect

The study examines the determinant factors that influence financial inclusion among small and medium enterprises (SMEs) in Ethiopia. The study uses an explanatory research design and a mixed research approach with both primary and secondary sources of data. More specifically, the study adopts a multiple linear regression model. The finding of the study reveals that; supply-side factors, demand-side factors, market opportunity, and collateral requirements have a positive effect on the firm’s access to finance. On the other hand, institutional framework factors, and the costs of borrowing negatively affect the firm’s access to finance. This study suggests concerned bodies sustain rapid and inclusive economic growth and hence eradicate extreme poverty and hunger, the policymakers must build an efficient, strong, and well-functioning financial market system that provides affordable and sustainable financial service to SMEs.

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