State financial assistance within Lesotho Maseru’s small, medium and micro enterprises
-
DOIhttp://dx.doi.org/10.21511/pmf.06(4).2017.01
-
Article InfoVolume 6 2017, Issue #4, pp. 7-14
- 1977 Views
-
286 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
Small, Medium and Micro Enterprises (SMMEs) function in both the micro and macro environments, and are subject to internal and external forces in most economies. The monitoring of the external and internal factors and vital strategies by SMME owners and stakeholders including government and supporting institutions is necessary to attempt a reduction in their failure rates. Literature supports this proposition in the development of SMMEs.
The aim of this study was to analyze the environmental factors that result in a low rate of success and a high failure rate of SMMEs in Maseru the capital city of Lesotho. Primary data for this study was collected through questionnaires which were distributed to a sample of 250 SMMEs owners, however, only 180 respondents completed and returned questionnaires, which were then used for data analysis. The data was analyzed using the Statistical Package for Social Sciences (SPSS21). The findings revealed that there still persists inadequacy in financial assistance and the need to develop a financial strategy by the state. Government key intervention is proposed to enable growth and development in a sector that sustains job creation and poverty reduction through financial strategy. Further research on how the sector establishes support is also proposed.
- Keywords
-
JEL Classification (Paper profile tab)G1, G10
-
References39
-
Tables14
-
Figures0
-
- Table 1. Age * How did you obtain the start-up capital for your business? Cross tabulation
- Table 2. Correlations
- Table 3. Registration with OBFC * How did you obtain the start-up capital for your business?
- Table 4. Correlations
- Table 5. Are you aware of the financial institutions assisting SMMEs? *Was your request (loan) approved? Cross tabulation
- Table 6. Correlations
- Table 7. Gender
- Table 8. How did you obtain the start-up capital for your business?
- Table 9. Test statistics
- Table 10. Are you aware of the financial institutions assisting SMMEs?
- Table 11. If yes, have you tried applying for assistance of start-up capital from such institutions?
- Table 12. Test statistics
- Table 13. Ranks
- Table 14. Test statistics
-
- Appiah-Adu, K., & Singh, S. (1998). Customer orientation and performance: a study of SMEs. Management decision, 36, 385-394.
- Bekele, E. & Worku, Z. (2008). Factors that affect the long-term survival of micro, small and medium enterprises in Ethiopia. South African Journal of Economics, 76, 548-568.
- Brent, W. (2014). How the private sector drives economic growth and well-being.
- Cavana, R., Delahaye, B. L., & Sekeran, U. (2001). Applied business research: Qualitative and quantitative methods. Australia, John Wiley & Sons.
- Dabija, D. C. (2011). Aspects Regarding The Marketing Environment Of Retailers. Revista tinerilor economişti, 63-74.
- Dos Santos, M. (2009). Achieving Sustainable Competitive Advantage Through The Implementation Of The Societal Marketing Concept By A Major Retailer In South Africa. Journal of Global Business & Technology, 5.
- Economic Overview (2016). 2016 Budget Review.
- EThekwini Municipality (2017) SMME development[Online].
- Fiore, A. M., Niehm, L. S., Hurst, J. L., Jihyeong, S., & Sadachar, A. (2013). Entrepreneurial Marketing: Scale Validation with Small, Independently-Owned Businesses. Journal of Marketing Development & Competitiveness, 7, 63-86.
- Gatt, L. (2012). SMEs in Africa: Growth despite constraints.
- Grovest, E. (2013). New venture capital fund to give little guy a lift.
- Halme, M., & Korpela, M. (2013). Scarcity Or Abundance? Examination Of Resources Behind Responsible Innovation In Small Enterprises. Academy of Management Annual Meeting Proceedings, 602-607.
- Index Mundi (2013). Lesotho Economy Profile.
- Index Mundi (2013). Contraceptive prevalence in Iraq.
- IFAC (2006) business Planning Guide: Practical Application For Smes. New York, IFAC.
- Ihab, K. M., Radwaan, K., & Khaled, A. L. (2011) determinants and Impact of Training: The Case of SMEs in Jordan. International Journal of Economics and Finance, 3(5), 104-116
- Jeppesen, S. (2005). Enhancing competitiveness and securing equitable development: Can small, micro, and medium-sized enterprises (SMEs) do the trick? Development in practice, 15, 463-474.
- Keh, H. T., & Shieh, E. (2001). Online grocery retailing: success factors and potential pitfalls. Business Horizons, 44, 73-83.
- Kotrlik, J. W. K. J. W., & Higgins, C. (2001). Organizational research: Determining appropriate sample size in survey research appropriate sample size in survey research. Information technology, learning, and performance journal, 19, 43.
- Lamna (2015) Funding for start-ups and entrepreneurs in South Africa.
- Leitch, C. M., Mcmullan, C., & Harrison, R. T. (2009). Leadership development in SMEs: an action learning approach. Action Learning: Research & Practice, 6, 243-263.
- Lewis, P., & Thornhill, A. (2007). Research methods for business students. Pearson Education UK.
- McNamara, C. (2017) Understanding Strategic Planning.
- Migdadi, M. (2009). Knowledge management enablers and outcomes in the small‐and‐medium sized enterprises. Industrial Management & Data Systems, 109(6) 840-858.
- Miles, M. B., Huberman, A. M. & Saldana, J. (2013). Qualitative Data Analysis: A methods source book (Third edition). Thousand Oaks, SAGE Publications, Inc.
- Newman, A., & Sheikh, A. Z. (2012). Organizational commitment in Chinese small- and medium-sized enterprises: the role of extrinsic, intrinsic and social rewards. International Journal of Human Resource Management, 23, 349-367.
- Nthejane, P. (2003). The process of SME policy formulation in Lesotho.
- O’regan, N., Ghobadian, A., & Sims, M. (2006). Fast tracking innovation in manufacturing SMEs. Technovation, 26, 251-261.
- Olawale, F., & Garwe, D. (2010). Obstacles to the growth of new SMEs in South Africa: A principal component analysis approach. African Journal of Business Management, 4, 729-738.
- Premaratne, S. P. (2001). Networks, resources, and small business growth: the experience in Sri Lanka. Journal of small business Management, 39, 363-371.
- Reade, R. (2017) What is the average age of founders for the most successful startups?
- Riddell, W. C. (2006). The impact of education on economic and social outcomes: An overview of recent advances in economics. Canadian Policy Research Networks.
- Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill building approach. Wiley. London.
- Shepherd, D. A., & Patzelt, H. (2011). The new field of sustainable entrepreneurship: studying entrepreneurial action linking “what is to be sustained” with “what is to be developed”. Entrepreneurship Theory and Practice, 35, 137-163.
- Soontiens, W. (2002). Managing international trade: an analysis of South African SMEs and regional exports. Management Decision, 40, 710-719.
- Soriano, D. R., & Comeche Martinez, J. M. (2007). Transmitting the entrepreneurial spirit to the work team in SMEs: the importance of leadership. Management Decision, 45, 1102-1122.
- The Ministry of Trade and Industry Cooperatives and Marketing. (2012).
- The Economist. (2009). South Africa in Recession. Repo rate down to 7.5%.
- Tshabalala, D. B., & Rankhumise, E. M. (2011). What Impact Do Economic Issues Have on the Sustainability of Small, Medium and Micro Entrepreneurs? Journal of Management Policy & Practice, 12, 108-114.