3. Electronic Theses and Dissertations (ETDs) - All submissions
Permanent URI for this communityhttps://wiredspace.wits.ac.za/handle/10539/45
Browse
2 results
Search Results
Item Challenges facing real estate development start-ups in the inner city of Johannesburg in accessing finance fro commercial banks: a South African context(2018) Qwabe, LeonardAccess to finance from commercial banks is a major barrier for Small and medium Business Enterprises (SMEs).The problem persists because of the stringent requirements the commercial banks put on the SMEs. The research attempted to determine whether or not Venture Capital or the Trust for Urban Housing Finance (TUHF) can be alternative sources of finance for inner city residential real estate development start-ups instead of commercial banks. The research evaluated some of the key reasons that the commercial banks put forth for rejecting SMEs loan application. The study is descriptive in nature, the data was collected using both an electronic survey and a printed questionnaire measuring the primary data sourced from the respondents, who are practising in the inner city property development space. The results are contrary to the expectation of the researcher and the literature reviewed. In the literature, track-record and collateral plays a major role in start-up inner city residential real estate developers lack of access to finance from commercial banks. The findings, however, show that track-record and collateral have weak relationship with access to finance from commercial banks for the start-up developers. Furthermore, the TUHF as an alternative source of finance had no results because the start-up real estate developers from the TUHF did not participate in large numbers. Venture capital as an alternative source of finance has a weak relationship with access to finance from commercial banks. Hence, venture capital cannot be seen as an alternative source of finance from commercial banksItem A comparison of alternative financing models for small and medium scale enterprises (SME's) in different phases of development(2016) Haankuku, ChabotaAlternative funding models for small and medium sized enterprises (SMEs) are more often than not reviewed from the perspective of the entrepreneur, in line with the need for funding in each growth phase. This research addresses the problem of funding availability for SMEs by interrogating what funding models are viable from the supply side through the growth phases of a small business in South Africa. The variables employed are loan amount advanced to the small business sector, risk appetite structures and measures, such as size, product, lending rate and sector. Using individual firm data in a cross section regression framework, the results of the study indicate a positive relationship between the size of the firm and the loan amount advanced. Evidence is presented that suggests that macroeconomic factors, such as the interest rate, do not have significant influence on lending. Further, and in confirmation of previous literature, this study indicates that there is a general lack of knowledge on how to fund small businesses in South Africa, and this research contributes to the existing literature by providing insights on the alternative models used by lenders to supply funding to SMEs.