Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa
Access to finance and market has been described as a predominant challenge confronting small and medium-sized enterprises (SMEs). Hence, this paper seeks to evaluate access to finance, market access and viability of SMEs. A quantitative research method and a purposive sampling technique were used to...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2021-03-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14772/PPM_2021_01_Msomi.pdf |
| _version_ | 1818379353820495872 |
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| author | Thabiso Msomi Odunayo Olarewaju |
| author_facet | Thabiso Msomi Odunayo Olarewaju |
| author_sort | Thabiso Msomi |
| collection | DOAJ |
| description | Access to finance and market has been described as a predominant challenge confronting small and medium-sized enterprises (SMEs). Hence, this paper seeks to evaluate access to finance, market access and viability of SMEs. A quantitative research method and a purposive sampling technique were used to select the participants for this study. Respondents from retail, manufacturing, construction and agricultural SMEs operating in Durban, KwaZulu-Natal, were selected to complete the structured questionnaires. 310 questionnaires were returned out of 321 distributed. The study revealed a significant effect of access to finance (absolute value 0.425) and access to market (absolute vale 0.373) on SMEs’ viability with a 5% level of significance. Thus, it was concluded that access to finance uniquely accounted for the larger proportion of the variance in the regression model. Thus, this study suggests that owners of SMEs should pay greater attention to access to finance in running their businesses, and the Government should aid SMEs to market their products and keep their businesses viable. Public loans or the government supported loans should be made available for SMEs with soften requirements in order to stimulate economic growth. |
| first_indexed | 2024-12-14T02:01:27Z |
| format | Article |
| id | doaj.art-44f2c60e085f4b91a29b9656717a247b |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-12-14T02:01:27Z |
| publishDate | 2021-03-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-44f2c60e085f4b91a29b9656717a247b2022-12-21T23:20:59ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672021-03-0119128128910.21511/ppm.19(1).2021.2414772Evaluation of access to finance, market and viability of small and medium-sized enterprises in South AfricaThabiso Msomi0https://orcid.org/0000-0003-3941-6815Odunayo Olarewaju1https://orcid.org/0000-0002-4366-040XPostgraduate Student, Department of Management Accounting, Faculty of Accounting and Informatics, Durban University of TechnologyPhD., Senior Lecturer, Department of Management Accounting, Faculty of Accounting and Informatics, Durban University of TechnologyAccess to finance and market has been described as a predominant challenge confronting small and medium-sized enterprises (SMEs). Hence, this paper seeks to evaluate access to finance, market access and viability of SMEs. A quantitative research method and a purposive sampling technique were used to select the participants for this study. Respondents from retail, manufacturing, construction and agricultural SMEs operating in Durban, KwaZulu-Natal, were selected to complete the structured questionnaires. 310 questionnaires were returned out of 321 distributed. The study revealed a significant effect of access to finance (absolute value 0.425) and access to market (absolute vale 0.373) on SMEs’ viability with a 5% level of significance. Thus, it was concluded that access to finance uniquely accounted for the larger proportion of the variance in the regression model. Thus, this study suggests that owners of SMEs should pay greater attention to access to finance in running their businesses, and the Government should aid SMEs to market their products and keep their businesses viable. Public loans or the government supported loans should be made available for SMEs with soften requirements in order to stimulate economic growth.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14772/PPM_2021_01_Msomi.pdfbusiness survivalexternal fundingfinancial viabilitylinear regression analysismarket penetration |
| spellingShingle | Thabiso Msomi Odunayo Olarewaju Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa Problems and Perspectives in Management business survival external funding financial viability linear regression analysis market penetration |
| title | Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa |
| title_full | Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa |
| title_fullStr | Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa |
| title_full_unstemmed | Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa |
| title_short | Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa |
| title_sort | evaluation of access to finance market and viability of small and medium sized enterprises in south africa |
| topic | business survival external funding financial viability linear regression analysis market penetration |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14772/PPM_2021_01_Msomi.pdf |
| work_keys_str_mv | AT thabisomsomi evaluationofaccesstofinancemarketandviabilityofsmallandmediumsizedenterprisesinsouthafrica AT odunayoolarewaju evaluationofaccesstofinancemarketandviabilityofsmallandmediumsizedenterprisesinsouthafrica |