SME OWNERS AND DEBT FINANCING: MAJOR CHALLENGES FOR EMERGING MARKET

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Jonathan Cameron ORCID logo, Muhammad Ehsanul Hoque ORCID logo

https://doi.org/10.22495/cocv13i4c4p3

Abstract

The purpose of this qualitative study was to unpack the different aspects of the financial obstacles that small medium entrepreneurs (SMEs) face in South Africa. Data were collected by conducting one on one interview’s among four financial specialists from financial institution. The financial specialists reported risk was seen as a contributing factor for loans being declined. Other reasons to decline loan were not having business management skills, lack of financial management, experience in an industry and passion for what they do, poor credit record keeping, and lack of collateral. The opportunities leading from the study suggest that entrepreneurs have the potential to improve their chances of accessing finance by enrolling in entrepreneurial and business management studies, thereby learning to overcome poor financial management, and improve their business management skills.

Keywords: Business Growth, Collateral, Entrepreneurs, Financial Specialist, Management Skills, Receiving Finance

How to cite this paper: Cameron, J., & Hoque, M. (2016). SME owners and debt financing: Major challenges for emerging market. Corporate Ownership & Control, 13(4-4), 542-548. https://doi.org/10.22495/cocv13i4c4p3