Financial access as a growth constraint for small and medium enterprises: A case study of the Northern Cape Province, South Africa
Acta Commercii
| Field | Value | |
| Title | Financial access as a growth constraint for small and medium enterprises: A case study of the Northern Cape Province, South Africa | |
| Creator | Peters, Ricardo M. Pretorius, Tania | |
| Description | Orientation: Small and medium-sized enterprises (SMEs) are vital for economic growth and innovation, yet limited access to finance remains a critical barrier to their sustainability and expansion in developing economies like South Africa.Research purpose: This study investigates the accessibility of funding from commercial banks and development finance institutions for SMEs in the Northern Cape, South Africa.Motivation for the study: The research addresses the specific financial constraints and institutional limitations impacting business growth within the Northern Cape’s unique economic landscape.Research design, approach and method: Using purposive sampling, data were collected from 100 SMEs via structured surveys and analysed through descriptive statistics, regression analysis, and Chi-square tests.Main findings: Formal financing significantly predicts turnover growth (OR = 2.45, p = 0.023). Ownership type was also identified as a key determinant of funding access. Conversely, BEE initiatives showed no statistically significant relationship with SME growth metrics, highlighting a gap in intervention effectiveness.Practical/managerial implications: To bolster SME sustainability, policymakers should prioritise targeted financial support and streamlined formal funding access. Additionally, BEE programs require significant restructuring to effectively meet the financial needs of small businesses.Contribution/value-add: This study contributes empirical evidence from the Northern Cape province, highlighting how formal financing access, ownership structure, and institutional mechanisms shape SME growth outcomes. | |
| Publisher | AOSIS | |
| Date | 2026-03-20 | |
| Identifier | 10.4102/ac.v26i1.1515 | |
| Source | Acta Commercii; Vol 26, No 1 (2026); 10 pages 1684-1999 2413-1903 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://actacommercii.co.za/index.php/acta/article/view/1515/3003
https://actacommercii.co.za/index.php/acta/article/view/1515/3004
https://actacommercii.co.za/index.php/acta/article/view/1515/3005
https://actacommercii.co.za/index.php/acta/article/view/1515/3006
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