Start-up Awareness and Access toFinance: The Case of South African SMEs

Q4 Business, Management and Accounting

Restaurant Business Pub Date : 2019-10-18 DOI:10.26643/rb.v118i10.9333

N. H. Bamata, K. Govender

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Abstract

Start-up entrepreneurs in South Africa do not move from the stage of existence and survival to growth to maturity/ In order for Start-up businesses to have a competitive advantage, they have to grow beyond the survival stage and keep on growing. Despite the availability of external finance, access to finance from banks has been identified as the main challenge to the establishment and growth of SME Start-ups in South Africa. The aim of this study is toinvestigate the determinants of start-up awareness to improve access to finance from banks by Start-up entrepreneurs in Pietermaritzburg, the capital city of KwaZulu-Natal province in South Africa. Data was collected through self-administrated questionnaires from a random sample of 253 respondents being members of the Chamber of Commerce in the capital city of one of the largest provinces in South Africa.The results from inferential statistical analysis revealed that start-up awareness factors such as conducting a feasibility study, finding a good location, knowing the amount of seed capital needed, developing a business strategy, a business plan, and business model as well as the source of seed capital, are significant determinants of access to bank financing by start-up entrepreneurs.Thus, entrepreneurs should understand the determinants of Start-up awareness in order to improve their ability to access bank finance.

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创业意识与融资渠道:以南非中小企业为例

南非的创业企业家不会从存在和生存阶段到成长到成熟阶段/为了使创业企业具有竞争优势，他们必须超越生存阶段并不断成长。尽管可以获得外部资金，但从银行获得资金已被确定为南非中小企业初创企业建立和发展的主要挑战。本研究的目的是调查创业意识的决定因素，以改善南非夸祖鲁-纳塔尔省首府彼得马里茨堡的创业企业家从银行获得融资的机会。数据是通过自行管理的问卷从253名随机抽样的答复者中收集的，这些答复者是南非最大省份之一省会城市商会的成员。推论统计分析的结果显示，创业意识因素，如进行可行性研究、寻找良好的地点、了解所需的种子资金数量、制定商业战略、商业计划、商业模式以及种子资金来源，是创业企业家获得银行融资的重要决定因素。因此，企业家应该了解创业意识的决定因素，以提高他们获得银行融资的能力。

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Restaurant Business Business, Management and Accounting-Tourism, Leisure and Hospitality Management

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