An empirical study of optimal access to external finance by small and medium enterprise start-ups

Author:

Bamata Herman1ORCID,K. Govender Krishna2ORCID,Fields Ziska3ORCID

Affiliation:

1. Ph.D. Student, School of Management, IT and Governance, University of KwaZulu-Natal

2. Ph.D., Professor, School of Management, IT and Governance University of KwaZulu-Natal, Durban

3. Professor, School of Management, IT and Governance, University of KwaZulu-Natal, Durban

Abstract

The aim of this study is to empirically examine the relationships between the determinants of start-up SME success, namely start-up awareness and management skills, and the finance suppliers. This study has proposed a framework that improves the ability of start-up SMEs to access external finance. Through descriptive and inferential statistical analyses of data from a survey of a sample of SMEs in South Africa, it was ascertained that the framework which maps the entrepreneur’s start-up awareness and requisite management skills with the finance providers’ requirements will make up a tool to assist start-up SMEs in developing optimal financing options to grow their businesses.

Publisher

LLC CPC Business Perspectives

Subject

Strategy and Management,Business and International Management,General Business, Management and Accounting,Information Systems and Management,Law,Sociology and Political Science,Public Administration

Reference62 articles.

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3. Ayandibu, A. O., & Houghton, J. (2017). The role of Small and Medium Scale Enterprise in local economic development (LED). Journal of Business and Retail Management Research, 11(2), 133-139. - https://www.reserchgate.net/publication/316583604_The_role_of_Small_and_Medium_Scale_Enterprise_in_Local_Economic_Development_LED

4. Beck, T. (2007). Financing constraints of SMEs in developing countries: the evidence, determinants and solutions. - https://econpapers.repec.org/paper/tiutiutis/85aac075-08b5-44ce-bf1a-96b2a50b64a6.htm

5. Bisseker, C. (2014). SMEs: Stop the failure rate. - http://www.financialmail.co.za/features/2014/05/15/smes-stop-the-failure-rate

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