Finance for SMEs and its effect on growth and inequality: evidence from South Africa

Nanziri, Lwanga Elizabeth; Wamalwa, Peter Simiyu

doi:10.1080/19186444.2021.1925044

Cited by 10 publications

(6 citation statements)

References 34 publications

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“…Table 6 below indicates that 60% of the SMMEs stated that savings were their major source of finance, while 2% showed that they were borrowing from other individuals. This supports observations by Nanziri & Wamalwa (2021) and Owusu, Owusu Ansah, Djan & Anin (2021) regarding the reliance on savings to fund SMME operations.…”

Section: Fundingsupporting

confidence: 87%

AN EVALUATION OF GOVERNMENT SUPPORT SERVICES FOR SMMEs IN THOHOYANDOU, SOUTH AFRICA

Kelly¹,

Shumba²,

Zindiye³

et al. 2022

JEI

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Small, Medium, and Micro Enterprises (SMMEs) possess attributes akin to entrepreneurship that make them indispensable tools for economic growth and development. While SMMEs have a direct impact on economic growth in advanced economies, these enterprises have a high failure rate due to a variety of reasons, especially during the start-up and growth phases. Government support schemes have been availed to SMMEs to assist them to survive the vulnerable phases of their existence. This study investigates the role of government support services towards the development and growth of SMMEs in South Africa. The quantitative research design used the survey method to collect data from a sample of one hundred (100) SMMEs in Thohoyandou, South Africa. The Statistical Package for Social Sciences (SPSS) was used to analyse the data, and presentation used descriptive analysis. The main study revealed that despite the government support schemes and initiatives, the failure rate of SMMEs remains high. The major factors affecting the uptake of government support schemes and initiatives included the lack of information and access to the financial assistance offered to most SMMEs through the government schemes. Despite the support schemes and initiatives, further challenges include the proliferating myriad of rules and regulations in the regulatory environment curtailing the operations and survival of SMMEs. Study findings indicated that despite the existence of the growth and development-oriented government support schemes, most SMMEs are unaware of their existence while other enterprises find them ineffective. The main conclusions point to the information deficit and needs analysis that would tailor-make and accommodate the specific requirements of different enterprises.

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Section: Fundingsupporting

confidence: 87%

AN EVALUATION OF GOVERNMENT SUPPORT SERVICES FOR SMMEs IN THOHOYANDOU, SOUTH AFRICA

Kelly¹,

Shumba²,

Zindiye³

et al. 2022

JEI

View full text Add to dashboard Cite

show abstract

“…To ease readability and comprehension for the respondents, the survey instrument was translated into the vernacular languages of South Africa. The rigour in implementing the survey and the quality control in the data collection led to the FinScope consumer surveys being used in several studies focusing on South Africa only (Latif & Magazi, 2021; Nanziri, 2018; Tita & Aziakpono, 2017) and other cross‐country studies that included South Africa (Ndlovu & Toerien, 2020).…”

Section: Data and Samplementioning

confidence: 99%

Asset accumulation, financial inclusion and subjective well‐being: The role of financial formality in South Africa's households

Chipunza,

Fanta

2023

Review Development Economics

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Asset building and financial inclusion programmes have contributed to the enhancement of consumers' welfare through asset accumulation. Employing the FinScope consumer survey for South Africa, we extended the analysis of the relationship between financial inclusion and asset holding by examining whether this, in turn, improves consumers' subjective well‐being (SWB). Financial inclusion was captured by credit, savings, and insurance whereas multiple correspondence analysis was employed to compute an asset index that captured indicators of individual material possessions. Results from the partial least squares path model suggested that financial inclusion had an indirect positive association with consumers' SWB through increased asset holding, but the association was more pronounced via formal channels of saving, credit, and insurance. As such, social policymakers are encouraged to integrate access to insurance, credit, and savings through formal channels in poverty interventions since this has a greater indirect association with consumers' SWB via increased asset ownership.

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“…In fact, the important role of financial development in promoting structural transformation has been widely demonstrated (Jiang et al, 2020;Nanziri & Wamalwa, 2021), and financial development can significantly improve environmental performance (Tamazian & Rao, 2010). Recent studies have found that, as an important financial tool for emission reduction, green credit can significantly reduce the level of firm pollution (Fan et al, 2021).…”

Section: Theoretical Hypothesismentioning

confidence: 99%

Digital Finance and Pollution

yueling

Wang²,

Zhang

2023

Journal of Global Information Management

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Using combined data from the 2011–2013 China Industrial Firm Database, China Industrial Firm Pollution Emission Database, and provincial-level digital financial inclusion index, this paper investigates the impact of digital finance on firm pollution. The authors find that digital finance significantly reduces firm SO2 emission intensity. The inclusive finance attribute of digital finance is conducive to alleviating firm financing constraints and promoting firm transformation and emission reduction. Furthermore, digital finance reduces pollution through innovation compensation. Digital finance mainly affects private firms and small and medium-sized firms, while it mainly plays its role through depth of use, digital payments, and digital credit. The basic conclusions of this paper are verified by using the Internet development level and the spherical distance from Hangzhou, as instrumental variables. This paper has important policy implications for developing countries using digital financial tools to promote green economic transformation and high-quality development.

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Finance for SMEs and its effect on growth and inequality: evidence from South Africa

Cited by 10 publications

References 34 publications

AN EVALUATION OF GOVERNMENT SUPPORT SERVICES FOR SMMEs IN THOHOYANDOU, SOUTH AFRICA

AN EVALUATION OF GOVERNMENT SUPPORT SERVICES FOR SMMEs IN THOHOYANDOU, SOUTH AFRICA

Asset accumulation, financial inclusion and subjective well‐being: The role of financial formality in South Africa's households

Digital Finance and Pollution

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