Credit accessibility and enabling policies for SMMEs in King Sabata Dalindyebo Local Municipality South Africa
- Authors: Busakwe, Lomso
- Date: 2024-04
- Subjects: Credit -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Small business -- Management -- South Africa -- Eastern Cape
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64884 , vital:73938
- Description: Small, medium and micro enterprises contribute significantly to the economy, approximately 34% to South Africa’s Gross Domestic Product. They also play a vital role in the economy as drivers for reducing unemployment. In a modern transforming globe, small, medium and micro enterprises depend on funding. Categorically, credit in South Africa is limited to small, medium and micro enterprises from banks, this has to do with the credit histories, policies and collateral. The issue of policies that make it convenient for Small, medium and micro enterprises to obtain loans have proven to be difficult. These policies aspects have verified to be specifically difficult for regulations meant to increase asset-based total lending. The aim of the study was to assesses the role, adequacy and gaps of current policies to enhance credit accessibility by SMMEs in the KSDLM. The following research objectives are pursued: to identify the challenges faced by small businesses in the KSDLM, specifically from a credit access perspective; to identify the role of policies in assisting SMMEs to access credit for their small businesses in the KSDLM; to identify the policy gaps that hinder access to credit by SMMEs in the KSDLM; to draft a policy framework that enhances access to credit by SMMEs. A mixed method approach was adopted in this study. A questionnaire for quantitative approach, as well as an interview schedule for qualitative approach, was used to collect data. A sample of 145 small, medium, and micro enterprises, as well as 5 financial institutions, was utilised for the study. The study revealed numerous challenges that are hindering small, medium and micro enterprises from accessing credit and they are compliant, lack of proper record keeps, poor adjustment to technology, collateral and stability. Most small, medium and micro enterprises mentioned are facing challenges in accessing credit owing to the policies that are in place that do not cater for all their challenges and shortcomings. The study recommend that the Government can provide financial assistance to small businesses through grants, loans, tax incentives, and subsidies. These initiatives can reduce the financial burden on small businesses, allowing them to invest in growth, innovation and sustainability. , Thesis (MPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Busakwe, Lomso
- Date: 2024-04
- Subjects: Credit -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Small business -- Management -- South Africa -- Eastern Cape
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/64884 , vital:73938
- Description: Small, medium and micro enterprises contribute significantly to the economy, approximately 34% to South Africa’s Gross Domestic Product. They also play a vital role in the economy as drivers for reducing unemployment. In a modern transforming globe, small, medium and micro enterprises depend on funding. Categorically, credit in South Africa is limited to small, medium and micro enterprises from banks, this has to do with the credit histories, policies and collateral. The issue of policies that make it convenient for Small, medium and micro enterprises to obtain loans have proven to be difficult. These policies aspects have verified to be specifically difficult for regulations meant to increase asset-based total lending. The aim of the study was to assesses the role, adequacy and gaps of current policies to enhance credit accessibility by SMMEs in the KSDLM. The following research objectives are pursued: to identify the challenges faced by small businesses in the KSDLM, specifically from a credit access perspective; to identify the role of policies in assisting SMMEs to access credit for their small businesses in the KSDLM; to identify the policy gaps that hinder access to credit by SMMEs in the KSDLM; to draft a policy framework that enhances access to credit by SMMEs. A mixed method approach was adopted in this study. A questionnaire for quantitative approach, as well as an interview schedule for qualitative approach, was used to collect data. A sample of 145 small, medium, and micro enterprises, as well as 5 financial institutions, was utilised for the study. The study revealed numerous challenges that are hindering small, medium and micro enterprises from accessing credit and they are compliant, lack of proper record keeps, poor adjustment to technology, collateral and stability. Most small, medium and micro enterprises mentioned are facing challenges in accessing credit owing to the policies that are in place that do not cater for all their challenges and shortcomings. The study recommend that the Government can provide financial assistance to small businesses through grants, loans, tax incentives, and subsidies. These initiatives can reduce the financial burden on small businesses, allowing them to invest in growth, innovation and sustainability. , Thesis (MPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
Access to credit and the effect of credit constraints on household welfare in the Eastern Cape province, South Africa
- Baiyegunhi, Lloyd-James Segun
- Authors: Baiyegunhi, Lloyd-James Segun
- Date: 2009
- Subjects: Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11153 , http://hdl.handle.net/10353/d1000977 , Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
- Date Issued: 2009
- Authors: Baiyegunhi, Lloyd-James Segun
- Date: 2009
- Subjects: Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11153 , http://hdl.handle.net/10353/d1000977 , Rural poor -- South Africa -- Eastern Cape , Households -- Economic aspects -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape , Finance -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape
- Description: In recent years, concern about food safety linked to health issues has seen a rise in private food safety standards in addition to the regulations set by the Food and Agriculture Organisation (FAO) in collaboration with the World Health Organisation (WHO). These have presented challenges to producers and exporters of agricultural food products especially the producers of fresh fruits and vegetables. In spite of the food safety-linked challenges from the demand side, the vast range of business-environment forces pose equally formidable challenges that negatively impact on the exporting industries’ ability to maintain or improve their market shares and their ability to compete in world markets. The objective of this study was therefore to establish the competitiveness of the South African citrus industry in the international markets within this prevailing scenario. Due to the diversity of the definitions of competitiveness as a concept, this study formulated the following working definition: “the ability to create, deliver and maintain value and constant market share through strategic management of the industrial environment or competitiveness drivers”. This was based on the understanding that the international market shares of an industry are a function of forces in the business environment which range from intra-industry, external and national as well as the international elements. The unit of analysis were the citrus producers engaged in export of their products and the study made use of 151 responses by producers. The study adopted a five-step approach to the analysis of the performance of the South African citrus industry in the global markets, starting with the analysis of the Constant Market Share (CMS) of the South African citrus industry in various world markets, establishing the impact of the business environmental factors upon competitiveness, establishing the costs of compliance with private food safety standards, determining the non-price benefits of compliance with the standards, as well as highlighting the strategies for enhancing long-term competitiveness of the industry in the international markets. South Africa is one of the top three countries dominating the citrus fruit export market. Since its entry into the citrus fruit exports market in the 1900s, the industry has sustained its activity in the international market. The Constant Market Share Analysis shows that, amidst the challenges on the international market side, and the changes in the business environment, over much of which the industry has limited control and influence, the industry has maintained its competitive advantage in several markets. The CMS shows that South Africa’s lemons are competitive in America. Despite a negative trend, the South African grapefruit has been competitive in France, Greece, Italy, the Netherlands and Spain. Oranges have been competitive in the Greece, Italy, Portugal, UK, Asian and Northern Europe markets. Competitiveness in these markets has been due to the inherent competitiveness of the industry. Competitiveness in such markets as the Middle East has been attributed to the relatively rapid growth of these markets. The South African citrus industry has similarly undergone many major processes of transformation. The business environmental factors influencing its performance have ranged reform to the challenges beyond the country’s borders. These factors directly and indirectly affect the performance of the industry in the export market. They have influenced the flow of fruits into different international destinations. Of major concern are the food safety and private standards. Challenges in traditional markets as well as opportunities presented by demand from newly emerging citrus consuming nations have seen a diversification in the marketing of the South African citrus. The intensity of competition in the global market is reflected by the fluctuations in the market shares in different markets as well as the increase and fluctuations of fruit rejection rates in some lucrative markets such as America. A combination of challenging national environmental forces and stringent demand conditions negatively impact on revenues especially from markets characterised by price competitiveness. This study identified cost of production, foreign market support systems, adaptability, worker skills, challenges of management in an international environment and government policies such as labour and trade policies as some of the most influential obstacles to competitiveness. Some of the most competiveness-enhancing factors were market availability, market size, market information, market growth and the availability of research institutions. However, compliance with private standards still poses a challenge to the exporters. The different performance levels of the industry in various markets prove the dissimilarity of the demand conditions in the global market. These are supported by the negative influence associated with the foreign market support regimes as well as the challenges associated with compliance with private food safety standards. While market availability, market growth, market information and size were identified as enhancing competitiveness, the fluctuations and inconsistencies in the competitiveness of the industry in different foreign markets require more than finding markets. Resource allocation by both the government and the industry may need to take into account the off-setting of the national challenges and support of farmers faced with distorted and unfair international playing fields. Otherwise, market availability is not a challenge for the industry save meeting the specifications therewith as well as price competitiveness which is unattainable for the South African citrus producers faced with high production costs. For the purposes of further study, it is recommended that account should be taken of all the products marketed by the industry (including processed products such as fruit juices) in order to have a whole picture of the competitiveness of the industry in the international market. This study also proffers a new theoretical framework for the analysis of the business environment for the citrus industry and other agro-businesses. This framework takes into account the indispensability of the food safety standards and measures as well as the diversity of the global consumer and the non-negotiability of food trade for the sustenance of the growing population.
- Full Text:
- Date Issued: 2009
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