THE IMPACT OF FIRM AND ENTREPRENEURIAL CHARACTERISTICS ON ACCESS TO DEBT FINANCE BY SMES IN KING WILLIAMS TOWN, SOUTH AFRICA

By O. Fatoki, Francis T. Asah. 2011

224 citations recorded by the source corpus.

SMEs contribute positively to economic growth, employment and poverty alleviation in South Africa. However, the failure rate of SMEs is very high in South Africa. One of the factors limiting the survival and growth of SMEs in South Africa is non-availability of debt financing. This study investigates the impact of firm and entrepreneurial characteristics on access to debt finance by SMEs in South Africa. Data was collected through self-administered questionnaire in a survey. The statistical analyses included descriptive statistics, Pearson correlation and logistic regression. The results indicate that firm and entrepreneurial characteristics impact on access to debt finance by SMEs. The study recommends that SMEs owners/managers should be investment ready by providing collateral, attend seminars and training programs to improve on their managerial competence.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/a603053c7b7b5a15995378ebbe93395caab99af9

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In Accounting

1. Abdulaziz M. Abdulsaleh
2. Zhongzhi He
3. A. Kira
4. Andrew C. Worthington
5. Yao Wang

In Economics and Econometrics

1. Abdulaziz M. Abdulsaleh
2. Zhongzhi He
3. A. Kira
4. Andrew C. Worthington

Citations in the corpus

• The Impact of Firm Characteristics in Access of Financing by Small and Medium-sized Enterprises in Tanzania (2012, background): “Fatoki and Asah (2011) find out that SMEs located in urban are successful in access to debt financing compared those located in rural areas.”
• Small and Medium-Sized Enterprises Financing: A Review of Literature (2013, background): “In addition, in their investigation of the impact of firm and entrepreneurial characteristics on SME access to debt finance in South Africa, Fatoki and Asah (2011) observed that SMEs established more than five years have a far better chance to be successful in their credit applications compared…”