Abstract

CAMERON, J  and  HOQUE, M. Overcoming barriers by SMEs when accessing financial support from banks: a case study from Ethekwini Metro, KwaZulu-Natal. JCMAN [online]. 2017, vol.14, n.1, pp.1225-1242. ISSN 1815-7440.

Small and medium sized enterprises (SMEs) have played a key role in achieving sustained economic growth in South Africa, and their success going forward will assist with driving growth. However, SMEs face hurdles hindering their growth, and a major restraint to growth is access to finance. This article unpacks the financial obstacles that SMEs face in terms of accessing finance from banks, and how these obstacles might be resolved. The study was qualitative and was conducted among specialists at financial institutions in the Ethekwini Metro who dealt with the financing needs of SMEs in the region. Data were collected from one-on-one interviews with specialists - and were analysed using NVivo, a qualitative data-analysis programme. The main obstacles to the access of finance in the Ethekwini Metro were: basic education, mentoring, passion, training, screening prospective entrepreneurs, the scoring system, and backing for collateral. Therefore, when applying for finance to financial institutions - entrepreneurs should attend training courses on basic education, mentoring, passion, training, screening prospective entrepreneurs, the scoring system and backing for collateral - as indicated by the financial specialists.

Keywords : Accessing finance; entrepreneurs; financial specialists and loans.

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