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.

Purpose – The purpose of this paper is to empirically investigate the impact of motivation, personal values and managerial skills of managers on the performance of small and medium enterprises (SMEs) in South Africa. Design/methodology/approach – Data were collected through the use of self-administered questionnaire in a survey. Data analysis included factor analysis, descriptive statistics, Pearson correlation and regression analysis. Findings – The findings revealed significant positive relationships between motivations, personal values and managerial skills of SME owners on performance. Research limitations/implications – Access to external finance (debt or equity) is one of the factors that can impact on the performance of growing SMEs. The non-accessibility of debt finance from commercial banks and trade creditors is seen as one of the major contributing factors to the failure of SMEs in South Africa. This study did not link access to finance to performance. Practical implications – The failure rate of SMEs is very high in South Africa. The study suggests that SME owners should incorporate values and improve management skills. In addition, SMEs that are motivated by opportunity have a better chance of survival. Social implications – To reduce unemployment and poverty in South Africa. Originality/value – This study adds to the understanding of the relationship between of personal values, motivations and management skills of managers and the performance of SMEs from a developing country perspective.

Research purpose: Despite SMEs contributing substantially towards sustainable economic development, they have the highest failure rate in South Africa. Thus, the aim of this research is to explore the availability of credit from the formal financial sector to SMEs from a supply side perspective.Motivation for the study: Research on improving SMEs access to financial capital from the formal financial sector will assist in reducing the failure rate of SMEs and boost economic development in South Africa.Research approach/design and method: Using an interpretivistic research paradigm, data was collected from credit and business managers from eight of the largest formal financial sector using semi-structured in-depth interviews and analysed using content analysis. Main findings:The findings revealed that collateral, annual business turnover and audited financial records are the most important factors influencing the formal financial sector to provide credit to SMEs. The lack of investment capital, collateral and financial records are the main challenges faced by the formal financial sector in approving credit to SMEs.Practical/managerial implications: Implications for government and the private sector in policy development were provided. Contribution/value-add:This research highlights the most important factors and challenges faced by SMES in accessing credit from the formal financial sector. Using a qualitative research design further contributed, from a methodological perspective, to the literature on the financing of SMEs.

Orientation: Small and medium enterprises (SMEs) owned by immigrants in developing economies, such as South Africa, tend to trust formal financial institutions (FFIs) for financial support.Research purpose: Even though immigrant SMEs create opportunities that have important implications for the South African economy; less than 5% of them can access credit from FFIs. This study, therefore, explores the accessibility of credit from FFIs to immigrant SMEs from a supply-side perspective.Motivation for the study: Research studies on improving financing from FFIs to immigrant SMEs will help to boost the survival of immigrant SMEs and promote economic development in South Africa.Research design, approach and method: This qualitative research design used an interpretivistic research paradigm to achieve the research objectives. Data were collected from 16 purposively selected participants and analysed using the five-step process of content analysis outlined by Terre Blanche, Durrheim and Kelly.Main findings: The findings revealed that FFIs are uninterested and biased against considering financing immigrant SMEs and tend to charge them higher interest rates. Collateral, equity contribution and the possession of a South African permanent resident permit with a South African ID are the most important requirements that impact the willingness of FFIs to finance immigrant SMEs.Practical/managerial implications: Implications for the financial institutions in policy development were provided.Contribution/value-add: This research study highlights the requirements and the challenges faced by immigrant SMEs in accessing credit from FFIs. The use of qualitative research design further contributed to the literature on FFIs financing of immigrant SMEs.

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.