Financial management practices employed by small and medium enterprises (SMES) in the Buffalo City Metropolitan Municipality, Eastern Cape
- Authors: Marembo, Mathew
- Date: 2013
- Subjects: Small business -- South Africa -- Eastern Cape -- Finance , Small business -- South Africa -- Eastern Cape -- Management
- Language: English
- Type: Thesis , Masters , M Com (Business Management)
- Identifier: vital:11325 , http://hdl.handle.net/10353/d1013583 , Small business -- South Africa -- Eastern Cape -- Finance , Small business -- South Africa -- Eastern Cape -- Management
- Description: This study examined how financial management decisions are made by small and medium enterprises (SMEs) in the Buffalo City Metropolitan in Eastern Cape, South Africa. The study aimed at discovering SME awareness on financial management practices. The financial management practices address issues on capital budgeting, working capital management, capital structure, financial reporting and analysis. The study, therefore, hypothesised that SMEs were not aware of the sound financial management practices. It was also intended in this study to examine the relationship between employment of sound financial management practices and firm financial performance. Subsequently, the study hypothesised that the employment of sound financial management practices by SMEs did not significantly affect their financial performance. The results obtained in this study revealed that SMEs were aware of the sound financial management practices that could be employed to yield high financial performance. However, the results also revealed that most SMEs were not employing qualified personnel and this in turn had an effect on the effectiveness of the financial management practices that the SMEs utilised. The findings also indicated that the employment of sound financial management practices did significantly and positively affect the financial performance of SMEs. The study recommended that SMEs could increase their chances of financial survival if they employ sound financial management practices. The study also gave recommendations to the South African Government to provide effective facilities and services to SMEs and help sustain them because they are important in the economy. Lastly, the study recommended financial institutions to relax their credit granting policies so that SMEs could access funds.
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- Date Issued: 2013
The impact of networking on access to finance and performance of SMES in Buffalo City Municipality, Eastern Cape, South Africa
- Authors: Machirori, Tafadzwa Leroy
- Date: 2012
- Subjects: Small business -- South Africa -- Eastern Cape -- Finance , Business networks -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape -- Management , Finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com (Business Management)
- Identifier: vital:11313 , http://hdl.handle.net/10353/521 , Small business -- South Africa -- Eastern Cape -- Finance , Business networks -- South Africa -- Eastern Cape , Entrepreneurship -- South Africa -- Eastern Cape , Credit -- South Africa -- Eastern Cape -- Management , Finance -- South Africa -- Eastern Cape
- Description: This study investigates the impact of networking on access to finance and performance of small and medium enterprises (SMEs) in the Buffalo City Municipality in the Eastern Cape Province of South Africa. The objectives of this study are to examine (1) whether entrepreneurial characteristics of the SME owner and the firm characteristics of the SME are related to networking by SMEs, (2) whether networking is related to access to bank loans and trade credit by SMEs, (3) whether networking is related to the performance of SMEs and (4) whether access to debt finance by SMEs mediates the relationship between networking and performance of SMEs. The results reveal that the gender and education of SME owners and the age, size and legal status of SMEs are the entrepreneurial and firm characteristics that are positively related to networking by SMEs. In addition, the results indicate that there is a positive relationship between networking and access to finance and performance of SMEs. The results of this study further reveal that access to debt finance partially mediates the relationship between networking and performance of SMEs. Lastly, the study recommended that SMEs should network more to gain access to information, resources and contact sharing. This will increase the likelihood of SMEs obtaining finance, and will also improve the performance of SMEs.
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- Date Issued: 2012