Evaluating Access to Information, access to finances, firm competition and Small Medium Enterprise performance in South Africa
Keywords:
Business performance; Business information; Corporate finance; firm competitivenessAbstract
At the center of the poor performance of SMEs are the lack of access to information, inaccessibility of finances, and lack of firm competitiveness. Hence this study evaluates the access to Information, access to finances, firm competition, and Small Medium Enterprise performance in South Africa. This employed a quantitative approach which was supported by the positivist paradigm. The study used a sample size of 140 SMEs. SME owners or suitable representatives were selected using the purposive sample technique. The results of the study revealed a positive correlation between access to information, access to finances, and SME performance. On the other hand, a negative correlation between firm competition and SME performance was observed. The study recommended that financial institutions should remove the limit on the amount of money the SME may borrow if they have appropriate collateral. Also, financial institutions should employ realistic loan repayment procedures in order to attract more clients and so enhance credit access. Finally, the research and the study urge that the government considers providing incentives for SMEs by holding workshops, seminars, and conferences to strengthen SMEs ' management abilities and keep them up to speed on continuous learning available in the market that would boost performance.
References
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Cheong, C. W., Lee, M. H., & Weissmann, M. A. (2020). Credit access, tax structure and the performance of Malaysian manufacturing SMEs. International Journal of Managerial Finance. 16(4), pp.433-454.
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Exposito, A., & Sanchis-Llopis, J. A. (2018). Innovation and business performance for Spanish SMEs: New evidence from a multi-dimensional approach. International Small Business Journal, 36(8), 911-931.
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Lin, M. S., Song, H. J., Sharma, A., & Lee, S. (2020). Formal and informal SME financing in the restaurant industry: The impact of macroenvironment. Journal of Hospitality and Tourism Management, 45, 276-284.
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Nkwabi, J., & Mboya, L. (2019). A review of factors affecting the growth of small and medium enterprises (SMEs) in Tanzania. European Journal of Business and Management, 11(33), 1-8.
Ogunsola, K., & Babalola, A. J. (2020). Dynamics of Business Information Use and Implications on Customer Satisfaction and Performance of Micro, Small and Medium-Scale Enterprises in Ibadan, Nigeria. Journal of African Interdisciplinary Studies, 4(6), 21-37.
Olarewaju, O., & Msomi, T. (2021a). Factors affecting small and medium enterprises’ financial sustainability in South Africa. African Journal of Inter/Multidisciplinary Studies, 3(1), 103-117.
PRAMONO, R., Sondakh, L. W., BERNARTO, I., JULIANA, J., & PURWANTO, A. (2021). Determinants of the small and medium enterprises progress: A case study of SME entrepreneurs in Manado, Indonesia. The Journal of Asian Finance, Economics, and Business, 8(1), 881-889.
Švárová, M., & Vrchota, J. (2014). Influence of competitive advantage on formulation business strategy. Procedia Economics and Finance, 12, 687-694.
Twongyirwe, T. M., & Lubega, J. (2018). Exploratory Study on the Adoption of Knowledge Management Practices in Small Medium Enterprises in Resource Constrained Areas: A Case Study of the Dairy Industry in Uganda. Small, 10(49), 10.
Zakaria, N., Mohd Fauzi, W. I., Abdullah, N. A. C., & Yusoff, R. Z. (2018). The link between HRM practices and performance in Malaysian SMEs. International Journal of Supply Chain Management (IJSCM), 7(6), 118-126.
Adebayo, O. K. (2011). Information Needs and Utilization of SMEs in a Competitive Economy in Lagos State. https://globaledunet.org/wp-content/uploads/2018/09/Paper-3-Kassim.pdf.
Ahmed, K. M. (2019). The Role of Small and Medium-Sized Interprises (SMEs) Participation in Public Procurement Implementation: A Case of Banadir Region. EPRA International Journal of Research and Development (IJRD), April.
AKINYI, R. J. (2018). FACTORS AFFECTING PERFORMANCE OF SMALL AND MEDIUM ENTEPRISES IN KENYA: A CASE STUDY OF GIKOMBA MARKET IN NAIROBI COUNTY (Doctoral dissertation, MUA).
Bunyasi, G. N. W., Bwisa, H., & Namusonge, G. (2014). Effect of access to business information on the growth of small and medium enterprises in Kenya. International Journal of Business and Social Science, 5(10).
Cheong, C. W., Lee, M. H., & Weissmann, M. A. (2020). Credit access, tax structure and the performance of Malaysian manufacturing SMEs. International Journal of Managerial Finance. 16(4), pp.433-454.
Chingapi, A., & Steyn, A. A. (2022). SMEs in South Africa: The Era of Adopting Mobile Payment Solutions. In Proceedings of Sixth International Congress on Information and Communication Technology (pp. 429-447). Springer, Singapore.
Demartini, M. C., & Beretta, V. (2020). Intellectual capital and SMEs’ performance: A structured literature review. Journal of Small Business Management, 58(2), 288-332.
Exposito, A., & Sanchis-Llopis, J. A. (2018). Innovation and business performance for Spanish SMEs: New evidence from a multi-dimensional approach. International Small Business Journal, 36(8), 911-931.
Fatoki, O. (2018). The impact of entrepreneurial resilience on the success of small and medium enterprises in South Africa. Sustainability, 10(7), 2527.
Ghosh, P. K., Ghosh, S. K., & Chowdhury, S. (2018). Factors hindering women entrepreneurs’ access to institutional finance-an empirical study. Journal of Small Business & Entrepreneurship, 30(4), 279-291.
Haliso, Y., Chima, O. E., & Jeremiah, O. O. (2019). INFLUENCE OF BUSINESS INFORMATION USE ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN PORT-HARCOURT NIGERIA. Library Philosophy and Practice, 1-10.
Ibrahim, M. A., & Shariff, M. N. M. (2016). Mediating role of access to finance on the relationship between strategic orientation attributes and SMEs performance in Nigeria. International Journal of Business and Society, 17(3).
Imran, M., Salisu, I., Aslam, H. D., Iqbal, J., & Hameed, I. (2019). Resource and information access for SME sustainability in the era of IR 4.0: The mediating and moderating roles of innovation capability and management commitment. Processes, 7(4), 211.
Kiveu, M. N., Namusonge, M., & Muathe, S. (2019). Effect of innovation on firm competitiveness: the case of manufacturing SMEs in Nairobi County, Kenya. International Journal of Business Innovation and Research, 18(3), 307-327.
LESTARI, S. D., LEON, F. M., WIDYASTUTI, S., BRABO, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. The Journal of Asian Finance, Economics, and Business, 7(6), 365-378.
Lin, M. S., Song, H. J., Sharma, A., & Lee, S. (2020). Formal and informal SME financing in the restaurant industry: The impact of macroenvironment. Journal of Hospitality and Tourism Management, 45, 276-284.
Martinez-Cillero, M., Lawless, M., & O'Toole, C. (2021). SME investment determinants and financing constraints: A stochastic frontier approach (No. 699). ESRI Working Paper.
Mathu, K. (2021). Supply Chain Management as a Competitive Advantage of Fast-Moving Consumer Goods SMEs in South Africa. Journal of Energy and Natural Resources, 10(1), 33.
Mostert, P. G., Steyn, T. F. J., & Mentz, M. H. (2017). RELATIONSHIP INTENTION AND CUSTOMER SATISFACTION AS PREDICTORS OF SOUTH AFRICAN SMES'LOYALTY TOWARDS A RISK FINANCIER. Journal of Global Business & Technology, 13(1).
Msomi, T. S. (2021). The role of financial awareness for viable and sustainable small-medium enterprises in Kwa-Zulu Natal, Durban (Doctoral dissertation).
Msomi, T., & Olarewaju, O. (2021). Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa. Problems and Perspectives in Management, 19(1), 281-289. doi:10.21511/ppm.19(1).2021.24
Mueller, A., & Sensini, L. (2021). Determinants of Financing Decisions of SMEs: Evidence from Hotel Industry. International Journal of Business and Management, 16(3), 117-127.
Muriithi, S. M. (2017). African small and medium enterprises (SMEs) contributions, challenges and solutions. http://repository.daystar.ac.ke/xmlui/handle/123456789/3613
Mutula, S. M. (2010). Information needs and access in SMEs. In Digital Economies: SMEs and E-Readiness (pp. 237-247). IGI Global.
Ngetich, B. (2020). Access to business information, business finance, managerial skills and performance of SMES in Kenya.
Nkwabi, J., & Mboya, L. (2019). A review of factors affecting the growth of small and medium enterprises (SMEs) in Tanzania. European Journal of Business and Management, 11(33), 1-8.
Ogunsola, K., & Babalola, A. J. (2020). Dynamics of Business Information Use and Implications on Customer Satisfaction and Performance of Micro, Small and Medium-Scale Enterprises in Ibadan, Nigeria. Journal of African Interdisciplinary Studies, 4(6), 21-37.
Olarewaju, O., & Msomi, T. (2021a). Factors affecting small and medium enterprises’ financial sustainability in South Africa. African Journal of Inter/Multidisciplinary Studies, 3(1), 103-117.
PRAMONO, R., Sondakh, L. W., BERNARTO, I., JULIANA, J., & PURWANTO, A. (2021). Determinants of the small and medium enterprises progress: A case study of SME entrepreneurs in Manado, Indonesia. The Journal of Asian Finance, Economics, and Business, 8(1), 881-889.
Švárová, M., & Vrchota, J. (2014). Influence of competitive advantage on formulation business strategy. Procedia Economics and Finance, 12, 687-694.
Twongyirwe, T. M., & Lubega, J. (2018). Exploratory Study on the Adoption of Knowledge Management Practices in Small Medium Enterprises in Resource Constrained Areas: A Case Study of the Dairy Industry in Uganda. Small, 10(49), 10.
Zakaria, N., Mohd Fauzi, W. I., Abdullah, N. A. C., & Yusoff, R. Z. (2018). The link between HRM practices and performance in Malaysian SMEs. International Journal of Supply Chain Management (IJSCM), 7(6), 118-126.
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Published
2022-02-09
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MSOMI, T. S., Yearwood, V. M. ., & Msomi, M. P. (2022). Evaluating Access to Information, access to finances, firm competition and Small Medium Enterprise performance in South Africa: Array. The Journal of Accounting and Management, 12(2). Retrieved from https://dj.univ-danubius.ro/index.php/JAM/article/view/1551
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Copyright (c) 2022 Thabiso Sthembiso MSOMI, Verna Melicent Yearwood, Mbali Portia Msomi
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