An analysis of the availability of and access to credit from the formal financial sector and the performance of SMEs
- Authors: Asah, Francis Tangwo
- Date: 2019
- Subjects: Small business -- South Africa -- Finance , Microfinance -- South Africa , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/115138 , vital:34081
- Description: As a developing nation, South Africa faces a high rate of poverty, high levels of inequality in terms of income and a high rate of unemployment. It is officially estimated that about 27.2% of the economically active population are unemployed. SMEs are expected to be an important vehicle to address the challenges of job creation, sustainable economic growth, equitable distribution of income and the overall stimulation of economic development. SMEs in South Africa constitute 99% of all businesses, contributing to employment, income inequality and poverty alleviation (Statistic South Africa, 2018). However, despite the remarkable contribution of SMEs to the economy of South Africa, the failure rate of SMEs (at 75%) is the highest of all the efficiency-driven economies sampled by the Global Entrepreneurship Monitor (GEM). The World Bank affirm that the availability of and access to credit from the formal financial sector is the primary cause of the high failure rate of SMEs. Contemporary literature advance that the future survival and performance of SMEs in South Africa is pegged onto the amount of financial capital available to address their capital needs. Thus, this study sought to analyse the availability of and access to credit from the formal financial sector and the performance of SMEs from the supply and demand-side. In order to achieve the objectives of the study, a sequential exploratory mixed method research design, located in the pragmatic research paradigm, was used in a two phased approach. The qualitative data collection and analysis in Phase 1 informed the quantitative data collection and analysis Phase 2. In Phase 1, in-depth face-to-face semi-structured interviews were conducted with 8 credit and 8 business managers representing the sampling unit of selected formal financial institutions. The qualitative data collected was analysed using the five-steps process of content analysis as illustrated by Terre Blanche et al. (2006:322-326). The main findings with regard to factors that impact on the willingness of the formal financial sector to provide credit to SMEs were collateral, annual business turnover, audited financial records, relationship with the bank, credit profile, nature of the business, economic climate, ethics, nationality, government policy, management team, valid Identity Document/permit, equity contribution, entrepreneurship education, product quality, and business intelligence. Assessing credit applications from SMEs, risk assessment, inspection of financial records, proper documentation and background checks were the different tasks performed by credit and business managers. In addition, the main challenges faced by the formal financial sector in assessing and approving credit in favour of SMEs included the following: lack of investment capital; lack of collateral; lack of proper financial records; poor managerial knowledge; poor business plan; lack of industrial knowledge; and poor legal and credit laws. Lastly, contrary to the notion that formal financial institutions are not interested in investing in SMEs, on average, 70% of SMEs that applied for credit received such credit. In Phase 2, a self-administered questionnaire was used to collect data from formal sector owner/managers of SMEs in the city of Johannesburg. Of the 702 questionnaires distributed, 300 were returned and useable. Data was analysed using the Statistical Package for the Social Sciences (version 24). A test for normality was performed using Shapiro–Wilks test. Reliability was tested using the Cronbach’s Alpha Coefficient. Exploratory factor analysis tested the validity of factors that prevent formal financial sector from granting credit to SMEs while Binary logistic regression was used to infer on the hypotheses. Spearman’s Rho correlation analysis was used to determine whether there was any significant relationship with factors that influence access to credit and SMEs performance. The main findings revealed that access to bank finance was the only challenge that showed a significant correlation with performance. In addition, the study revealed that the South African Identity Document and collateral were the most important factors considered when applying for credit from formal financial institutions. With regard to the reasons why formal financial institutions may refuse to grant credit to SMEs, it was revealed that there was no significant positive relationship between lack of business networking and access to credit from the formal financial sector to SMEs. Conversely, the study also revealed a significant positive relationship between collateral, business information, managerial competency, business intelligence, business ethics, entrepreneurship education, legal system and macro-economy and access to credit from the formal financial sector to SMEs. Thus, it was established that there is a significant positive relationship between access to credit from the formal financial sector and the performance of SMEs.
- Full Text:
- Date Issued: 2019
- Authors: Asah, Francis Tangwo
- Date: 2019
- Subjects: Small business -- South Africa -- Finance , Microfinance -- South Africa , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/115138 , vital:34081
- Description: As a developing nation, South Africa faces a high rate of poverty, high levels of inequality in terms of income and a high rate of unemployment. It is officially estimated that about 27.2% of the economically active population are unemployed. SMEs are expected to be an important vehicle to address the challenges of job creation, sustainable economic growth, equitable distribution of income and the overall stimulation of economic development. SMEs in South Africa constitute 99% of all businesses, contributing to employment, income inequality and poverty alleviation (Statistic South Africa, 2018). However, despite the remarkable contribution of SMEs to the economy of South Africa, the failure rate of SMEs (at 75%) is the highest of all the efficiency-driven economies sampled by the Global Entrepreneurship Monitor (GEM). The World Bank affirm that the availability of and access to credit from the formal financial sector is the primary cause of the high failure rate of SMEs. Contemporary literature advance that the future survival and performance of SMEs in South Africa is pegged onto the amount of financial capital available to address their capital needs. Thus, this study sought to analyse the availability of and access to credit from the formal financial sector and the performance of SMEs from the supply and demand-side. In order to achieve the objectives of the study, a sequential exploratory mixed method research design, located in the pragmatic research paradigm, was used in a two phased approach. The qualitative data collection and analysis in Phase 1 informed the quantitative data collection and analysis Phase 2. In Phase 1, in-depth face-to-face semi-structured interviews were conducted with 8 credit and 8 business managers representing the sampling unit of selected formal financial institutions. The qualitative data collected was analysed using the five-steps process of content analysis as illustrated by Terre Blanche et al. (2006:322-326). The main findings with regard to factors that impact on the willingness of the formal financial sector to provide credit to SMEs were collateral, annual business turnover, audited financial records, relationship with the bank, credit profile, nature of the business, economic climate, ethics, nationality, government policy, management team, valid Identity Document/permit, equity contribution, entrepreneurship education, product quality, and business intelligence. Assessing credit applications from SMEs, risk assessment, inspection of financial records, proper documentation and background checks were the different tasks performed by credit and business managers. In addition, the main challenges faced by the formal financial sector in assessing and approving credit in favour of SMEs included the following: lack of investment capital; lack of collateral; lack of proper financial records; poor managerial knowledge; poor business plan; lack of industrial knowledge; and poor legal and credit laws. Lastly, contrary to the notion that formal financial institutions are not interested in investing in SMEs, on average, 70% of SMEs that applied for credit received such credit. In Phase 2, a self-administered questionnaire was used to collect data from formal sector owner/managers of SMEs in the city of Johannesburg. Of the 702 questionnaires distributed, 300 were returned and useable. Data was analysed using the Statistical Package for the Social Sciences (version 24). A test for normality was performed using Shapiro–Wilks test. Reliability was tested using the Cronbach’s Alpha Coefficient. Exploratory factor analysis tested the validity of factors that prevent formal financial sector from granting credit to SMEs while Binary logistic regression was used to infer on the hypotheses. Spearman’s Rho correlation analysis was used to determine whether there was any significant relationship with factors that influence access to credit and SMEs performance. The main findings revealed that access to bank finance was the only challenge that showed a significant correlation with performance. In addition, the study revealed that the South African Identity Document and collateral were the most important factors considered when applying for credit from formal financial institutions. With regard to the reasons why formal financial institutions may refuse to grant credit to SMEs, it was revealed that there was no significant positive relationship between lack of business networking and access to credit from the formal financial sector to SMEs. Conversely, the study also revealed a significant positive relationship between collateral, business information, managerial competency, business intelligence, business ethics, entrepreneurship education, legal system and macro-economy and access to credit from the formal financial sector to SMEs. Thus, it was established that there is a significant positive relationship between access to credit from the formal financial sector and the performance of SMEs.
- Full Text:
- Date Issued: 2019
The call centre labour process : a study of work and workers’ experiences at Joburg Connect, South Africa
- Authors: Magoqwana, Babalwa Mirianda
- Date: 2015
- Subjects: Johannesburg (South Africa) -- Joburg Connect , Call center agents -- South Africa -- Johannesburg -- Case studies , Work environment -- South Africa -- Johannesburg -- Case studies , Customer services -- South Africa -- Johannesburg -- Case studies , Personnel management -- South Africa -- Johannesburg -- Case studies , Employee morale -- South Africa -- Johannesburg -- Case studies , Employees -- Attitudes -- Case studies , Municipal services -- South Africa -- Johannesburg -- Case studies , South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , South Africa -- Social conditions -- 1994-
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:3400 , http://hdl.handle.net/10962/d1018569 , Johannesburg (South Africa) -- Joburg Connect , Call center agents -- South Africa -- Johannesburg -- Case studies , Work environment -- South Africa -- Johannesburg -- Case studies , Customer services -- South Africa -- Johannesburg -- Case studies , Personnel management -- South Africa -- Johannesburg -- Case studies , Employee morale -- South Africa -- Johannesburg -- Case studies , Employees -- Attitudes -- Case studies , Municipal services -- South Africa -- Johannesburg -- Case studies , South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994-
- Description: This thesis is an investigation of the call centre labour process focusing on both the way work is organised and experienced by the operators and the management of employee relations inside a local government workplace – The City of Johannesburg (COJ) Call Centre. The City of Johannesburg is used to understand labour process dynamics in local government. Johannesburg was recently named the ‘World’s Second Most Inspiring City’ (by Global City Index, 2014) possessing economic and political influence within and around South Africa. Johannesburg is the economic hub of the country, contributing nine per cent to the South African GDP. But it needs to be emphasised that the focus of this thesis is on the labour process rather than the City of Johannesburg. The nature of work in the COJ local government call centre involves answering calls about water, electricity, refuse removal, accounts and other general municipal services. The government’s objective was to have a more customer centred service delivery plan in compliance with the Batho Pele (People first) framework (RSA, 1997, White Paper on Local Government). This resulted in a shift in the government ‘mantra’ and philosophy from viewing Johannesburg residents as customers rather than citizens. This shift from public administration to New Public Management (NPM) has meant the introduction of private sector business principles into public services. This seeks to improve organisational and individual performance to enhance service delivery within South African municipalities. This is also meant to promote responsive and performance management culture. The study uses Labour Process Theory set out in Labour and Monopoly Capital (LMC-1974) by Harry Braverman to argue for the need to contextualise the labour process debate within the socio-political understanding of work in South Africa. In developing the argument about the narrow analysis of public sector call centres based on economic lines I have reviewed literature on call centres which is influenced by Michel Foucault and Harry Braverman to understand the public sector call centre labour process. Inspired by Adesina (2002) and Mafeje (1981) this study uses a ‘complementarity’ approach to knowledge. This means the local context tends to complement the global trends though not without contradictions within the local context. The case study approach was used for in-depth analysis of the local context through different methods (semi-structured interviews, focus group discussions, observations and survey questionnaires) to collect data from different stakeholders within the City of Johannesburg between 2010 and 2013. The concept of a ‘(dis)connecting city’ is fitting for the COJ as this city connects the rest of Sub-Saharan Africa and South Africa to the world through its commerce and political influence. Based on the challenges experienced in this local government call centre I attempt to show the the politicised nature of the public sector call centre labour process. I use the differential power relations in the frontline between customer and Joburg connect workers to illustrate this point. The lack of emphasis on the politicised nature of public sector call centres within literature is informed by the de-contextualised nature of these call centres. In the end, I argue that public sector call centre labour process is multilayered, contradictory and complicated because of these workers’ role as citizens, customers, community members and service providers from a politicised community environment.
- Full Text:
- Date Issued: 2015
- Authors: Magoqwana, Babalwa Mirianda
- Date: 2015
- Subjects: Johannesburg (South Africa) -- Joburg Connect , Call center agents -- South Africa -- Johannesburg -- Case studies , Work environment -- South Africa -- Johannesburg -- Case studies , Customer services -- South Africa -- Johannesburg -- Case studies , Personnel management -- South Africa -- Johannesburg -- Case studies , Employee morale -- South Africa -- Johannesburg -- Case studies , Employees -- Attitudes -- Case studies , Municipal services -- South Africa -- Johannesburg -- Case studies , South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , South Africa -- Social conditions -- 1994-
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:3400 , http://hdl.handle.net/10962/d1018569 , Johannesburg (South Africa) -- Joburg Connect , Call center agents -- South Africa -- Johannesburg -- Case studies , Work environment -- South Africa -- Johannesburg -- Case studies , Customer services -- South Africa -- Johannesburg -- Case studies , Personnel management -- South Africa -- Johannesburg -- Case studies , Employee morale -- South Africa -- Johannesburg -- Case studies , Employees -- Attitudes -- Case studies , Municipal services -- South Africa -- Johannesburg -- Case studies , South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994-
- Description: This thesis is an investigation of the call centre labour process focusing on both the way work is organised and experienced by the operators and the management of employee relations inside a local government workplace – The City of Johannesburg (COJ) Call Centre. The City of Johannesburg is used to understand labour process dynamics in local government. Johannesburg was recently named the ‘World’s Second Most Inspiring City’ (by Global City Index, 2014) possessing economic and political influence within and around South Africa. Johannesburg is the economic hub of the country, contributing nine per cent to the South African GDP. But it needs to be emphasised that the focus of this thesis is on the labour process rather than the City of Johannesburg. The nature of work in the COJ local government call centre involves answering calls about water, electricity, refuse removal, accounts and other general municipal services. The government’s objective was to have a more customer centred service delivery plan in compliance with the Batho Pele (People first) framework (RSA, 1997, White Paper on Local Government). This resulted in a shift in the government ‘mantra’ and philosophy from viewing Johannesburg residents as customers rather than citizens. This shift from public administration to New Public Management (NPM) has meant the introduction of private sector business principles into public services. This seeks to improve organisational and individual performance to enhance service delivery within South African municipalities. This is also meant to promote responsive and performance management culture. The study uses Labour Process Theory set out in Labour and Monopoly Capital (LMC-1974) by Harry Braverman to argue for the need to contextualise the labour process debate within the socio-political understanding of work in South Africa. In developing the argument about the narrow analysis of public sector call centres based on economic lines I have reviewed literature on call centres which is influenced by Michel Foucault and Harry Braverman to understand the public sector call centre labour process. Inspired by Adesina (2002) and Mafeje (1981) this study uses a ‘complementarity’ approach to knowledge. This means the local context tends to complement the global trends though not without contradictions within the local context. The case study approach was used for in-depth analysis of the local context through different methods (semi-structured interviews, focus group discussions, observations and survey questionnaires) to collect data from different stakeholders within the City of Johannesburg between 2010 and 2013. The concept of a ‘(dis)connecting city’ is fitting for the COJ as this city connects the rest of Sub-Saharan Africa and South Africa to the world through its commerce and political influence. Based on the challenges experienced in this local government call centre I attempt to show the the politicised nature of the public sector call centre labour process. I use the differential power relations in the frontline between customer and Joburg connect workers to illustrate this point. The lack of emphasis on the politicised nature of public sector call centres within literature is informed by the de-contextualised nature of these call centres. In the end, I argue that public sector call centre labour process is multilayered, contradictory and complicated because of these workers’ role as citizens, customers, community members and service providers from a politicised community environment.
- Full Text:
- Date Issued: 2015
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