The Financing Options for New Small and Medium Enterprises in South Africa

Fatoki, Olawale

doi:10.5901/mjss.2014.v5n20p748

Cited by 24 publications

(26 citation statements)

References 28 publications

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“…Severino (2012) affirms that SMMEs' equity capital constraints are a consequence of their owners' financial incapability, which forecloses their access to financial opportunities and business growth potential. Our finding contradicts Fatoki's (2014) claim that South African SMME operations can enhance their credibility when sourcing funding externally by first seeking internal equity before considering other funding sources.…”

Section: Effects Of Private Funding On Human Resourcescontrasting

confidence: 56%

“…Since the dominant forms of debt financing were from banks and from community group savings, it could argue that these institutions are loaning SMMEs small amounts, which do not impact considerably on the businesses' recruitment and compensation processes. The risk averseness of banks is well documented (Fatoki, 2014;Mpiti, 2016;SEDA, undated). In the same vein, community group savings also involve small amounts, which may be inconsequential to the human practices of SMMEs.…”

Section: Effects Of Private Funding On Human Resourcesmentioning

confidence: 99%

“…The gulf between the SMME financing literature (Falkena et al, 2001;International Finance Corporation 2011;Mahembe, 2011;Timm, 2012, Fatoki, 2014 and SMME human resourcing (Horwitz, 2013;Almeida et al, 2015;Davis & Luiz, 2015;Nyamubarwa, 2016) stems from the varied foci of these discourses. The literature on SMME financing has foregrounded: SMMEs' limited awareness of external funding opportunities, nascence of the African financial systems and high cost of borrowing (Beck et al, 2009); SMMEs' bureaucracy which complicates their capacity to capitalise on available funding opportunities (Lekhanya & Mason, 2014), the complexities in meeting loaning requirements (Chimucheka & Mandipaka, 2015) and limited access to financing opportunities (Schmidt, Mason, Bruwer & Aspeling, 2016).…”

Section: Problem Backgroundmentioning

confidence: 99%

“…A gap exists between literature that examines the financing of SMMEs on the one hand (Falkena et al, 2001;Fatoki, 2014;Mpiti, 2016) and the formalisation of human resource practices of SMMEs on the other (Cameron & Miller, 2008;Sheehan, 2013;Nyamubarwa, 2016). In addition, there is a paucity of literature that explores the intersection between private financing and human resource practices of SMMEs in emerging economies.…”

Section: Introductionmentioning

confidence: 99%

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Private Financing and Human Resource Practices of Small Local and Foreign-Owned Cosmetological Businesses

Rambe¹

2017

JEBS

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There exists a growing body of empirical studies that explore both the sources of small, micro and medium enterprises (SMME) funding, and the quality of their human resource practices. However, there is paucity of literature that interrogates the impact of private funding of local and foreign SMMEs on the quality of human resources. Nevertheless, the wide recognition of the economic significance of SMMEs in emerging economies and the pivotal role that funding plays in the growth of such firms suggest that the nexus between SMME private funding and human resourcing is integral to this condition and growth. As a result, the current study examined the influence of private financing of local and foreign-owned hair salon SMMEs on the quality of their human resources, in an attempt to bridge the aforementioned research gap. The study, which drew on a quantitative approach, is based on a survey conducted on 150 South African and foreign immigrant-owned hair salon businesses. The findings suggest that the private financing structure was dominated by a combination of debt and equity financing, followed by debt financing, with equity financing as the least employed funding model. The study established the significant impact that access to private equity financing has on recruitment, selection and compensation. However, the level of private debt financing, attractiveness of interest rates for private debt financing and financial value of funding from private institutions (banks) do not have any impact on human resources management practices. A major observation from the results is that, some aspects of private financing impact negatively on human resources management albeit a small effect size, which somehow raises critical questions about the popular claims that financing, contributes positively to the quality of human resources of firms.

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Section: Effects Of Private Funding On Human Resourcescontrasting

confidence: 56%

Section: Effects Of Private Funding On Human Resourcesmentioning

confidence: 99%

Section: Problem Backgroundmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Private Financing and Human Resource Practices of Small Local and Foreign-Owned Cosmetological Businesses

Rambe¹

2017

JEBS

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“…As such, it has gained a high importance in the research field. While some analysts suggested that the successful outcome of enterprises is a function of both external and internal factors (Beck & Demirguc-Kunt, 2006;Benzing & Chu, 2009;Cook & Nixson, 2000;Fatoki, 2014). Other authors argued that the dynamics of the small and medium business successful outcome and performance remain a black box (Deakins, Logan, & Steele, 2001;Ligthelm, 2013).…”

Section: International Journal Of Research Studies In Management 15mentioning

confidence: 99%

Entrepreneur-firm characteristics and financing sources

Eniola¹

2017

IJRSM

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The point of this study is to review the effect of entrepreneur-firm characteristics on the financing sources of small and medium enterprises (SME) in Nigeria. To review the effect of entrepreneur characteristics on financing decisions regarding debt and equity. In addition, the overview will extend the acknowledgment and the acumen of entrepreneur-firm managers.They can have an effect on via precious information to assist them in their preference manner with appreciate to their business enterprise's capital structure amid a period when entrepreneur financing bothers are progressively inspired in the Nigeria ambience.

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