- Title
- Thematic analysis of challenges faced by small and medium construction companies in accessing credit in South Africa
- Creator
- Balogun, O.A., Agumba, J.N., Ansary, N.
- Subject
- Small and medium construction company, South Africa, Credit facilities
- Date
- 2015
- Type
- Conference proceedings
- Identifier
- http://hdl.handle.net/10210/17452
- Identifier
- uj:15885
- Identifier
- Citation: Balogun, A.O., Agumba, J.A. & Ansary, N. 2015. Thematic analysis of challenges faced by small and medium construction companies in accessing credit in South Africa. In Laryea, S. and Leiringer, R. (Eds) Procs 6th West Africa Built Environment Research (WABER) Conference, 10-12 August 2015, Accra, Ghana, p. 1103-1116. ISBN: 9780620662475.
- Description
- Introduction: The objective of this paper is to thematically analyse and present the constraints of accessing credit by the construction small and medium construction enterprises (SMEs) in South Africa. A survey conducted by Financial Service Board (FSB 2012) reported, that 36.2 % of the construction SMEs in South Africa reported that their business closed down due to shortage of working capital. Despite the fact that some of the construction SMEs had operated for some years. Furthermore, the survey also established a meagre, i.e. 5.8 % of the construction SMEs applied for credit. This suggests that construction SMEs are stif! led in accessing bank credit. This gap poses a problem and triggers the need to conduct a review on the challenges of construction SMEs in South Africa in accessing credit. A literature review was administered. The review established the challenges affecting the construction SME accessing credit to be; creditworthiness of the borrower, collateral requirement by the banks, risk default and lack of business plan.
- Language
- English
- Rights
- ©2015, the authors.
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