Tracking SMME Development in South Africa: Issues of Finance, Training and the Regulatory Environment

Rogerson, Christian M.

doi:10.1007/s12132-008-9025-x

Cited by 92 publications

(53 citation statements)

References 30 publications

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“…This implies that if credit rationing significantly affects small business credit markets, a rationale exists for supporting small enterprises through government programs aimed at improving their access to credit. Rogerson (2008) points out that the role of private banks in addressing the credit needs of SMEs is a major area for concern for policy makers. Schoombee (2000) argue that the failure of commercial banks to serve the low-income market makes government intervention necessary.…”

mentioning

confidence: 99%

The Effectiveness of Business Development Services Providers (BDS) in Improving Access to Debt Finance by Start-Up SMEs in South Africa

Musara¹,

Fatoki²

2011

IJEF

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Start-up SMEs are very important to employment creation, poverty alleviation and sustainable economic development of South Africa. One of the challenges facing start-ups is non-availability of debt financing. The government of South Africa has put in place various intervention efforts to improve access to debt finance by start-up SMEs. This study investigates empirically the effectiveness of Business Development Services providers (BDSs) in improving access to finance by start-up SMEs. Data was collected through the use of self-administered questionnaire. Data analysis included descriptive statistics, correlation and regression analysis. The results indicate that most start-up SMEs are not aware of the programme. The results furthermore indicate that start-up SMEs that are aware and use the programme have improved access to debt finance. The recommendations focused on improving the awareness of the programme by start-up SMEs.

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mentioning

confidence: 99%

The Effectiveness of Business Development Services Providers (BDS) in Improving Access to Debt Finance by Start-Up SMEs in South Africa

Musara¹,

Fatoki²

2011

IJEF

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“…As Rogerson (2008) reviews, numerous studies argue that finance is the main problem for MSMEs in South Africa. The previous section finds limited evidence to substantiate such arguments.…”

Section: What About Access To Finance?mentioning

confidence: 99%

What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank Enterprise Surveys

Mthimkhulu

Aziakpono

2015

SAJBM

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The growth of Micro, Small and Medium Enterprises (MSMEs) is often regarded as a solution to persistent unemployment in developing countries. Studies have shown that access to finance is the most serious obstacle to MSMEs' growth. This paper investigates key obstacles to the growth of MSMEs in South Africa using the World Bank Enterprise Surveys of 2003 and 2007. Two approaches are used to determine the key obstacles. The first improves on the simple count-of-ratings method used by many researchers. The second estimates the effects of obstacles on growth through sequential multivariate regressions based on the Growth Diagnostics framework by Hausmann, Rodrik & Velasco (2005) and identifies two levels of obstacles' intensities: binding constraints with negative and significant effects and constraints with notable effects whose negative effects are significant but less than the binding. From both count-and regression-based analyses, access to finance is a relatively less important obstacle. The count-based analysis finds crime to be the top obstacle. In the regressions, 'courts', which refers to the efficacy of the legal system and thus related to crime, is binding. Electricity and transportation of goods are the constraints with notable effects.

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“…Such data in a reliable form is difficult to gather from small firms. A review of empirical studies on small businesses in South Africa reveals that studies are mostly qualitative typically reviewing changes in legislations and policies on enterprise development (Daniels 2004;Rogerson 2004;Rogerson 2008;McGrath 2005), describing characteristics of entrepreneurs (Rwigema & Karungu, 1999), & obstacles entrepreneurs face (Ladzani & Netswera, 2009;Lotz & Marais, 2007;Netswera 2010). When quantitative, studies seek to identify common attributes of obstacles faced by entrepreneurs often using factor analysis (Unger, Keith, Hilling, Gielnik & Frese, 2009;Olawale & Garwe, 2010;Nieman, Visser, & van Wyk 2008).…”

Section: Introductionmentioning

confidence: 99%

What characterises high-growth firms in South Africa? Evidence from World Bank Enterprise Survey

Mthimkhulu

Aziakpono

2016

SAJBM

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In the past two decades, considerable efforts have been made to promote small and medium enterprises as a catalyst for job creation in many countries, including South Africa. However, globally a growing body of evidence shows that only a small segment of small and medium enterprises in an economy accounts for 50 to 70% of net new jobs. Using the World Bank Enterprise Survey and logit and quantile regressions, this paper empirically explores the characteristics of high growthfirms in South Africa. The study finds that firms that are less than 6 years create more jobs than the average firm in the sample. The results further suggest that the typical high-growth firms are black-owned.

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Tracking SMME Development in South Africa: Issues of Finance, Training and the Regulatory Environment

Cited by 92 publications

References 30 publications

The Effectiveness of Business Development Services Providers (BDS) in Improving Access to Debt Finance by Start-Up SMEs in South Africa

The Effectiveness of Business Development Services Providers (BDS) in Improving Access to Debt Finance by Start-Up SMEs in South Africa

What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank Enterprise Surveys

What characterises high-growth firms in South Africa? Evidence from World Bank Enterprise Survey

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