Bank Market Structure and SMMEs’ Access to Finance: A South African Perspective

Ngonisa, Phillip; Mgxekwa, Bahle; Ndlovu, Nomusa; Ngonyama, Nomasomi; Mlambo, Courage

doi:10.3390/economies11010030

Cited by 3 publications

(6 citation statements)

References 31 publications

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“…The lack of a will to improve creates an environment whereby SMMEs are on the peripheries of the township, reflecting poor readiness to adopt the 4IR in all aspects. This is in line with the conclusion by Ngonisa et al (2023) that SMMEs' access to finance is determined by location heterogeneity. Financial factors were highlighted as the most influential reason for adopting the latest ICT applications used by similar SMMEs.…”

Section: The Readiness Of Smmes To Adopt the Fourth Industrial Revolu...supporting

confidence: 91%

“…This was confirmed by Pu, Qamruzzaman, Mehta, Naqvi, and Karim (2021), who found that a lack of money, a lack of networking opportunities, and a lack of government backing are the main obstacles to the expansion of SMMEs. Ngonisa et al (2023) mentioned that evidence reveals that most SMMEs fail as a result of a lack of access to finance, with between 70% and 80% of the SMMEs closing before they reach five years of operation. It was suggested that to improve access to finance by SMMEs, policymakers should focus on policies that seek to enhance high competition in the banking sector (Ngonisa et al, 2023).…”

Section: External Support Interventionsmentioning

confidence: 99%

“…Ngonisa et al (2023) mentioned that evidence reveals that most SMMEs fail as a result of a lack of access to finance, with between 70% and 80% of the SMMEs closing before they reach five years of operation. It was suggested that to improve access to finance by SMMEs, policymakers should focus on policies that seek to enhance high competition in the banking sector (Ngonisa et al, 2023).…”

Section: External Support Interventionsmentioning

confidence: 99%

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Readiness of SMMEs for the adoption of the fourth industrial revolution in Mamelodi Township

Shibiti,

Masabo,

Ladzani

2023

IJRBS

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This study aimed to assess the readiness of small, medium, and micro enterprises (SMMEs) in Mamelodi township to adopt the Fourth Industrial Revolution (4IR). Within the South African environment, small, medium, and micro-enterprises (SMMEs) are frequently associated with a substantial rate of failure. Previous studies have investigated many factors that contribute to the low survival rate of small, medium, and micro enterprises (SMMEs). However, most of the studies focused on managerial issues, such as lack of experience, ineffective management methods, insufficient financial management, and obsolete marketing techniques. Most established companies have adopted various technologies associated with the Fourth Industrial Revolution (4IR) and are thriving as a result of the benefits associated with digitalization and automation. Therefore, it is crucial to evaluate the readiness of SMMEs in adopting the Fourth Industrial Revolution (4IR) and achieving similar benefits. Qualitative data was collected through interviews with owners and managers of small, medium, and micro enterprises (SMMEs) in Mamelodi township, Tshwane Municipality. The study found that SMMEs in Mamelodi are willing to adopt the Fourth Industrial Revolution (4IR), while encountering various difficulties. The results provide significant insights for owners and managers of Small, Medium, and Micro Enterprises (SMMEs) in townships about the implementation of the Fourth Industrial Revolution (4IR). Furthermore, government organizations tasked with supporting the creation and sustainability of small, medium, and micro enterprises (SMMEs) are aware of the scope of their operations, specifically in a township like Mamelodi. The study provided a vital contribution to the growing body of research on Small, Medium, and Micro Enterprises (SMMEs) in townships and their incorporation of the Fourth Industrial Revolution (4IR). The essay highlighted major barriers that hinder the adoption and use of existing technology, while also providing tangible evidence of the influence of contemporary technology on the development and success of small, medium, and micro enterprises (SMMEs).

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Section: The Readiness Of Smmes To Adopt the Fourth Industrial Revolu...supporting

confidence: 91%

Section: External Support Interventionsmentioning

confidence: 99%

Section: External Support Interventionsmentioning

confidence: 99%

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Readiness of SMMEs for the adoption of the fourth industrial revolution in Mamelodi Township

Shibiti,

Masabo,

Ladzani

2023

IJRBS

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“…The findings of this comprehensive literature review underscore the pivotal role played by Small, Medium, and Micro Enterprises (SMMEs) in South Africa's economic landscape (TeSai, 2014;Dalberg, 2011;Yoshino and Taghizadeh-Hesary, 2020;Ngonisa et al, 2023). These enterprises emerge as integral drivers of sustainable development and job creation, addressing the pressing issues of unemployment, inequality, and poverty.…”

Section: Implications For Smmesmentioning

confidence: 96%

“…Established SMMEs may be unable to purchase raw materials, access skilled labour, infrastructure, distribution, and transport logistics, or secure the necessary expertise to expand or survive during adverse conditions. This could limit growth and competitiveness (Nkwabi and Mboya, 2019;Mini, 2017;Ngonisa et al, 2023). The challenge that continues to exist is that SMMEs may (theoretically) get financing from a wide variety of sources, including the government and the private sector which may assist SMMEs to grow, including tax breaks, grants, equity financing alternatives, and loans.…”

Section: Access To Capitalmentioning

confidence: 99%

Challenges Experienced by SMMEs and Interventions by the South African National and Provincial Government: A Literature Review

Sibiya,

Van der Westhuizen,

Sibiya

2023

AJIMS

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Small, Medium, and Micro Enterprises (SMMEs) are pivotal players in economies worldwide, especially in developing and emerging economies, where they contribute significantly to job creation, poverty alleviation, and innovation. Despite their limited capital and financial resources, SMMEs play a vital role in new product development and technological innovation, driving industrial renewal and economic growth. This study employs a qualitative content analysis approach to examine the challenges and opportunities confronting SMMEs. Data for this analysis were drawn from various scholarly sources, including journals, books, and reputable academic publications. The findings of this theoretical literature review underscore that while SMMEs aim to foster economic growth and formalize their presence, regulatory and legislative frameworks often present stringent compliance requirements, posing significant challenges. This research highlights the potential of national and provincial public sector institutions to facilitate SMME growth and development, ensuring their stability and prominence within the economy.

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The Level of Knowledge in Financial and Non-Financial Support for SMMEs in South Africa

Tlhagale,

Ndou

2024

IJARBM

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Over the past few years, Small, Medium, and Micro Enterprises (SMMEs) performance has been a global subject. This performance focuses on SMME support that must be used. This study examines African-owned SMMEs knowledge of organisations that support them financially and non-financially. For this study, quantitative research was used. The City of Tshwane Metropolitan Municipality was chosen because African-owned SMMEs fail at high rates. Self-administered questionnaires were utilised to collect data. Developed and tested two hypotheses. The results showed SMMEs are unaware of financial and non-financial help. This discovery helps financial and non-financial organisations to consider African-owned SMMEs when designing policies, adding to SMME sector theory. The Government, financial, and non-financial organisations must adopt methods to inform African-owned SMMEs of available help so they can sustain their enterprises.

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Bank Market Structure and SMMEs’ Access to Finance: A South African Perspective

Cited by 3 publications

References 31 publications

Readiness of SMMEs for the adoption of the fourth industrial revolution in Mamelodi Township

Readiness of SMMEs for the adoption of the fourth industrial revolution in Mamelodi Township

Challenges Experienced by SMMEs and Interventions by the South African National and Provincial Government: A Literature Review

The Level of Knowledge in Financial and Non-Financial Support for SMMEs in South Africa

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