Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa
This paper examined the influences of interest on loans and loan re-payment plans on the sustainability of small and medium enterprises (SMEs) in South Africa. A quantitative research design that adheres to the positivist paradigm was utilized for this study's methodology. The study targeted 1...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Research and Postgraduate Support Directorate
2022-08-01
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| Series: | African Journal of Inter-Multidisciplinary Studies |
| Subjects: | |
| Online Access: | https://journals.cut.ac.zw/index.php/ajims/article/view/976 |
| _version_ | 1797998701283639296 |
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| author | Thabiso Msomi Odunayo Magret Olarewaju |
| author_facet | Thabiso Msomi Odunayo Magret Olarewaju |
| author_sort | Thabiso Msomi |
| collection | DOAJ |
| description |
This paper examined the influences of interest on loans and loan re-payment plans on the sustainability of small and medium enterprises (SMEs) in South Africa. A quantitative research design that adheres to the positivist paradigm was utilized for this study's methodology. The study targeted 103 SMEs operating in KwaZulu-Natal, South Africa using purposive sampling. A total of 103 surveys were administered, representing a participation rate of 100 percent. The analysis demonstrated a positive relationship between interest on loans and the SMEs’ sustainability and positive relationship between Loan re-payment plans and SMEs’ sustainability. The study recommended that financial institutions should examine loan re-payment plans for SMEs as necessary in order to minimize loan defaults by SMEs, and financial institutions should cut loan interest rates and the costs associated with loan approvals, which may be accomplished via automation and the utilization of online applications. Furthermore, the study suggested that financial institutions should design a flexible loan re-payment plan for SMEs that considers the nation's economic realities.
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| first_indexed | 2024-04-11T10:52:52Z |
| format | Article |
| id | doaj.art-2db807b747fd4acb986265e054a2958e |
| institution | Directory Open Access Journal |
| issn | 2663-4597 2663-4589 |
| language | English |
| last_indexed | 2024-04-11T10:52:52Z |
| publishDate | 2022-08-01 |
| publisher | Research and Postgraduate Support Directorate |
| record_format | Article |
| series | African Journal of Inter-Multidisciplinary Studies |
| spelling | doaj.art-2db807b747fd4acb986265e054a2958e2022-12-22T04:28:51ZengResearch and Postgraduate Support DirectorateAfrican Journal of Inter-Multidisciplinary Studies2663-45972663-45892022-08-0141Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South AfricaThabiso Msomi0Odunayo Magret Olarewaju 1Durban University of Technology, South AfricaCoventry University, United Kingdom This paper examined the influences of interest on loans and loan re-payment plans on the sustainability of small and medium enterprises (SMEs) in South Africa. A quantitative research design that adheres to the positivist paradigm was utilized for this study's methodology. The study targeted 103 SMEs operating in KwaZulu-Natal, South Africa using purposive sampling. A total of 103 surveys were administered, representing a participation rate of 100 percent. The analysis demonstrated a positive relationship between interest on loans and the SMEs’ sustainability and positive relationship between Loan re-payment plans and SMEs’ sustainability. The study recommended that financial institutions should examine loan re-payment plans for SMEs as necessary in order to minimize loan defaults by SMEs, and financial institutions should cut loan interest rates and the costs associated with loan approvals, which may be accomplished via automation and the utilization of online applications. Furthermore, the study suggested that financial institutions should design a flexible loan re-payment plan for SMEs that considers the nation's economic realities. https://journals.cut.ac.zw/index.php/ajims/article/view/976interest ratesloan paymentssustainability small business |
| spellingShingle | Thabiso Msomi Odunayo Magret Olarewaju Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa African Journal of Inter-Multidisciplinary Studies interest rates loan payments sustainability small business |
| title | Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa |
| title_full | Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa |
| title_fullStr | Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa |
| title_full_unstemmed | Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa |
| title_short | Nexus of Loan Re-payment Plans, Interest on Loans and the Sustainability of Small and Medium Enterprises in South Africa |
| title_sort | nexus of loan re payment plans interest on loans and the sustainability of small and medium enterprises in south africa |
| topic | interest rates loan payments sustainability small business |
| url | https://journals.cut.ac.zw/index.php/ajims/article/view/976 |
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