Home           Contact us           FAQs           
 
   Journal Page   |   Aims & Scope   |   Author Guideline   |   Editorial Board   |   Search
    Abstract
2012 (Vol. 4, Issue: 1)
Article Information:

Access to Finance in the SME Sector: A South African Perspective

Musara Mazanai and Olawale Fatoki
Corresponding Author:  Musara Mazanai 

Key words:  Access to finance, credit rationing, SMEs, South Africa, , ,
Vol. 4 , (1): 58-67
Submitted Accepted Published
2011 September, 14 2011 October, 24 2012 February, 20
Abstract:

The study provides a comprehensive discussion on access to finance by the Small and Medium Enterprises (SME) sector in South Africa. Access to finance has been noted as one of the major challenges impeding the survival and growth of the SME sector in South Africa. The problems of access to finance, gaps and the reasons for the gaps in SME financing in South Africa are discussed. Gaps in SME financing were discussed in relation Stiglitz and Weiss (1981) credit rationing theory which advocates that agency problems and asymmetric information are the main reasons for the credit rationing behaviours of credit providers to SMEs. This paper is a review to identify gaps in literature regarding the financing of SMEs in South Africa. It is revealed that access to finance by SMEs is still a major challenge impeding the realisation of the full potential of SMEs as engines of poverty alleviation, employment creation and economic growth at large. Therefore it is recommended that policy recommendations aimed at solving access to finance challenges must be empirically tested on a regular basis and progress in that regard must be constantly monitored and revised to eradicate the problem.
Abstract PDF HTML
  Cite this Reference:
Musara Mazanai and Olawale Fatoki, 2012. Access to Finance in the SME Sector: A South African Perspective.  Asian Journal of Business Management, 4(1): 58-67.
    Advertise with us
 
ISSN (Online):  2041-8752
ISSN (Print):   2041-8744
Submit Manuscript
   Current Information
   Sales & Services
   Contact Information
  Executive Managing Editor
  Email: admin@maxwellsci.com
  Publishing Editor
  Email: support@maxwellsci.com
  Account Manager
  Email: faisalm@maxwellsci.com
  Journal Editor
  Email: admin@maxwellsci.com
  Press Department
  Email: press@maxwellsci.com
Home  |  Contact us  |  About us  |  Privacy Policy
Copyright © 2009. MAXWELL Science Publication, a division of MAXWELLl Scientific Organization. All rights reserved