4. Electronic Theses and Dissertations (ETDs) - Faculties submissions
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Item The Cognitive Process of Entrepreneurs Seeking Access to External Finance to Drive SMME Growth(University of the Witwatersrand, Johannesburg, 2024) Rathogwa, Kediboni Belinda; Msimango- Galawe, JabulileSmall, micro and medium enterprises (SMME) need access to external finance to grow. Entrepreneurs’ financing decisions play an important role in enabling SMME access to external finance. Existing research does not adequately capture the complexity and dynamics involved when entrepreneurs make decisions. This study explored the cognitive process of entrepreneurs seeking external finance through which entrepreneurs’ financing decisions promote or limit SMME access to external finance. The study collected qualitative data through 14 in-depth interviews with entrepreneurs who operated businesses in South Africa. The data was analysed using reflexive thematic analysis to generate themes. Based on its findings, the study proposes a model of entrepreneurs’ process of choosing a course of action (MEPCCA). In addition, the study proposes an integrated model of the cognitive process of entrepreneurs seeking external finance to drive SMME growth (MCPESEF). The proposed MCPESEF provides a temporal account of the complex and dynamic process of seeking external finance. The study proffers that growth aspirations promote entrepreneurs applying for external finance by increasing its desirability, which positively influences their intention to apply. In contrast, the study proposes that discouragement limits entrepreneurs applying for external finance through its negative influence on entrepreneurs’ intention to apply. Further research is required to test the effect of perceived desirability and feasibility on entrepreneurs’ intention to apply for external finance. An in-depth understanding of the cognitive process of entrepreneurs seeking external finance supports efforts to improve SMME access to the external finance needed to drive growth.Item Factors affecting SMEs growth in Lesotho(University of the Witswatersrand, Johannesburg, 2023) Ramosoue, Liteboho ChristinaOrientation: SMEs are considered the main drivers behind the economic systems in both developing and developed economies However, SMEs are prone to the factors that preclude their growth. These factors include the challenge of access to finance, which is renowned to threaten SMEs continued growth and long-term sustainability. Motivation of the study: Likewise, in Lesotho, SMEs are considered crucial drivers towards achieving socio-economic objectives. However, according to the World Bank, the SMEs in Lesotho fail to contribute to the socio-economic objectives as per the expectations, hence the motivation to determine the challenges faced by SMEs, and how they preclude their growth. Purpose of the study: The objective of this study is to determine the impact of the challenge of access to finance on the growth and profitability of SMEs in Lesotho. Methodology: The study adopts a quantitative approach and utilises a survey questionnaire for data collection. A sample of 400 SMEs was selected using a simple random sampling technique from a population of 76 000 SMEs in Lesotho. The data collected was analysed using Multiple Linear Regression Analysis. The key findings: The study findings revealed that there is an insignificant negative relationship between collateral security requirement, interest rates and SMEs sales growth, and a significant negative relationship between the business plan requirement and SMEs sales growth. It also showed that there is a significant negative relationship between collateral security requirement and SMEs profitability, and an insignificant negative relationship between the business plan requirement, interest rates and SMEs profitability