scholarly journals The Financing Options for New Small and Medium Enterprises in South Africa

2014 ◽  
Author(s):  
Olawale Fatoki
Keyword(s):  
South Africa ◽  
Small And Medium Enterprises ◽  
Medium Enterprises

scholarly journals Underlying structures of risk response measures among small and medium contractors in South Africa

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Berenger Yembi Renault ◽  
Justus Ngala Agumba ◽  
Nazee Ansary
Keyword(s):  
South Africa ◽  
Factor Model ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Risk Avoidance ◽  
Risk Response ◽  
Response Measures ◽  
The One ◽  
Medium Enterprises ◽  
Structured Questionnaire

Although attention has been given to the measures used to respond to risk in the construction industry (CI), there is limited literature that scrutinizes underlying structures of risk response measures (RRMs) especially among small and medium enterprises (SMEs). This study, therefore, presents findings from an exploratory factor analysis (EFA) of RRMs. A positivist paradigm was adopted to collect empirical raw data from 181 conveniently sampled respondents in Gauteng, South Africa (SA), using a structured questionnaire. The results support the extant literature and empirically established the structural composition of risk response by two constructs. The construct with emerged measures was termed trailing measures while the one with popular measures was termed leading measures of risk response. However, the study yielded a two-factor model with all the six items supposed to measure risk response. Based on the results obtained, it seems that risk avoidance and risk mitigation are reliable measures for measuring risk response. This study could thus serve as a reference for the accurate measurement of risk response and for the development of agreed responses for each risk, including an appropriate strategy and specific responses to implement the chosen strategy. The study was limited to the CI and to a lesser extent, construction SMEs in Gauteng; hence the findings cannot be generalized to all SMEs in SA.

scholarly journals The Relationship between Learning Orientation and the Performance of Small and Medium Enterprises in South Africa

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 232-240
Author(s):  
Evelyn Motsepe ◽  
Olawale Fatoki
Keyword(s):  
South Africa ◽  
Small And Medium Enterprises ◽  
Learning Orientation ◽  
Mpumalanga Province ◽  
Performance Variables ◽  
Data Collection Process ◽  
Local Municipality ◽  
And Performance ◽  
Medium Enterprises ◽  
The Impact

Small and medium enterprises (SMEs) are an important vehicle in income re-distribution, poverty alleviation, employment creation and contribute to the gross domestic product of South Africa. However, SMEs in South Africa suffer from a weak level of performance and a high failure rate. The main objective of this study was to investigate the impact of learning orientation on the performance of SMEs. A quantitative approach was used, while a self-administered questionnaire was also employed during data collection process. A three- section questionnaire covering demographic information, learning orientation variables and performance variables was prepared and distributed randomly to a selected sample of 390 SME owners in Msukaligwa Local Municipality in Mpumalanga Province of South Africa. A total of 181 questionnaires were returned. Descriptive statistics, factor analysis, correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used to measure reliability. The results of the study revealed a significant positive relationship between learning orientation and the performance of SMEs. Recommendations to improve the learning orientation of SMEs are suggested.

scholarly journals Guidelines and criteria used by formal financial institutions to assess credit applications from small and medium enterprises in South Africa

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Francis T. Asah ◽  
Lynette Louw
Keyword(s):  
South Africa ◽  
Financial Institutions ◽  
Small And Medium Enterprises ◽  
Financial Statements ◽  
Annual Business ◽  
Fundamental Issue ◽  
Step Process ◽  
Background Checks ◽  
Medium Enterprises ◽  
Depth Interviews

Background: The involvement of formal financial institutions (FFIs) in financing small and medium enterprises (SMEs) is and always has been a fundamental issue of concern amongst policymakers and practitioners in developing countries such as South Africa, which experience very low or no economic growth.Aim: This study analysed the guidelines and criteria used by FFIs to assess credit applications from SMEs.Setting: This study investigated the guidelines and criteria instituted by the head office of FFIs when assessing and evaluating credit applications from SMEs in Johannesburg, South Africa.Methods: This study used an interpretivistic research paradigm to achieve the research objectives. Semi-structured in-depth interviews were used to collect data from participants and analysed using the Terre Blanche, Durrheim and Kelly five-step process of content analysis.Results: The findings revealed that assessing the amount of risk, scrutinising financial records, performing thorough background checks and requesting all relevant documentation constitute ways used by FFIs to measure the amount of risk associated with a particular credit application. Additionally, collateral, audited financial statements, annual business turnover, relationship with the bank and credit profile of the owners and/or business are the most important criteria used by FFIs when assessing credit applications.Conclusion: This study provides insights into the guidelines used by FFIs in assessing credit applications and the criteria used by FFIs when assessing and granting credit. This study revealed that some FFIs do not finance foreign-owned businesses as part of their institutional policy.

scholarly journals The Effect of Government Support on the Success of Small and Medium Enterprises: A Comparative Study between South Africa and China

2018 ◽  
Vol 9 (6) ◽  
pp. 166-173
Author(s):  
Rankhumise E M ◽  
Masilo K H
Keyword(s):  
South Africa ◽  
Small Businesses ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
Government Support ◽  
Small Enterprise ◽  
Structured Interviews ◽  
Support Mechanism ◽  
One Stop ◽  
Medium Enterprises

 The purpose of this article is to present evidence of a study conducted in two provinces of South Africa and one in China. The study investigated the effectiveness of the support mechanism for small and medium enterprises (SMEs) and how government support agencies are making strides in providing this support. Semi-structured interviews were conducted with branch managers, a project director and business advisors. It emerged from the findings that efforts are being made to provide valuable support to small businesses. It further emerged that small businesses still face challenges such as lack of access to funding, market to serve, lack of a one-stop office and the unwillingness of service providers to enter into contract with the Small Enterprise Development Agency (more relevant to the South African situation).It is recommended that financial service providers partner with SME support agencies.

scholarly journals Public outlook on small and medium enterprises as a strategic tool for economic growth and job creation in South Africa

2015 ◽  
Vol 4 (4) ◽  
pp. 412-418 ◽  
Author(s):  
Lawrence Mpele Lekhanya
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Quantitative Research ◽  
Small And Medium Enterprises ◽  
Job Creation ◽  
Primary Data ◽  
Research Approach ◽  
Survival And Growth ◽  
Analyse Data ◽  
Medium Enterprises

In spite of the key role played by the Small and Medium enterprises in economic development, there has been little effort to look at what needs to be done to improve survival and growth of SMEs. There is still a general lack of in-depth understanding from policy makers and other relevant stakeholders of how SMEs can be used as a strategic tool for economic growth and job creation in South Africa. These misperceptions and misunderstand leads to continuous failure to SMEs survival and growth. This study seeks to address this research gap. The study investigates the public views on what needs to be done to grow South African economy through the development of SMEs. Quantitative research approach was used to collect and analyse data for the study. Primary data was collected from four (4) provinces of South Africa. 230 people participated in the study. Questionnaires were emailed to each respondent and follow-ups were made via telephone. It was found that many SMEs fail within five years of their existence due to the various reasons. The most critical of these were related to lack of access to finance, lack of management experience as well as human capital. Study further revealed that most the SMEs owners/managers do not have business management related skills but rather they are just ordinary entrepreneurs.

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