Factors influencing credit accessibility for small and medium company in South Africa's construction industry : a literature review
- Balogun, O.A., Agumba, J.N., Ansary, N.
- Authors: Balogun, O.A. , Agumba, J.N. , Ansary, N.
- Date: 2015
- Subjects: Credit accessibility , Construction SMEs , South Africa
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/18040 , uj:15952 , Citation: Balogun, O.A., Agumba, J.N. & Ansary, N. 2015. Factors influencing credit accessibility for small and medium company in South Africa's construction industry : a literature review. Emuze, F.A. (Ed.) 4th Construction Management Conference : conference proceedings, 30 November - 01 December 2015, Port Elizabeth, South Africa. p. 264-273. ISBN: 9781920508616
- Description: Abstract: The study provides a comprehensive discussion on access to credit by the Small and Medium Enterprises (Construction SMEs) sector in South Africa. Access to credit has been noted as one of the major challenges impeding the survival and growth of the Construction SME sector in South Africa. The problems of access to finance, gaps and the reasons for the gaps in SME financing in South Africa are discussed. Gaps in SME financing were discussed in relation Stiglitz and Weiss (1981) credit rationing theory which advocates that agency problems and asymmetric information are the main reasons for the credit rationing behaviours of credit providers to Construction SMEs. This paper is a review to identify gaps in literature regarding the financing of Construction SMEs in South Africa. It is revealed that access to credit by Construction SMEs is still a major challenge impeding the realisation of the full potential of construction SMEs as engines of poverty alleviation, employment creation and economic growth at large. Therefore it is recommended that policy recommendations aimed at solving access to credit challenges must be empirically tested on a regular basis and progress in that regard must be constantly monitored and revised to reduce the problem
- Full Text: false
- Authors: Balogun, O.A. , Agumba, J.N. , Ansary, N.
- Date: 2015
- Subjects: Credit accessibility , Construction SMEs , South Africa
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/18040 , uj:15952 , Citation: Balogun, O.A., Agumba, J.N. & Ansary, N. 2015. Factors influencing credit accessibility for small and medium company in South Africa's construction industry : a literature review. Emuze, F.A. (Ed.) 4th Construction Management Conference : conference proceedings, 30 November - 01 December 2015, Port Elizabeth, South Africa. p. 264-273. ISBN: 9781920508616
- Description: Abstract: The study provides a comprehensive discussion on access to credit by the Small and Medium Enterprises (Construction SMEs) sector in South Africa. Access to credit has been noted as one of the major challenges impeding the survival and growth of the Construction SME sector in South Africa. The problems of access to finance, gaps and the reasons for the gaps in SME financing in South Africa are discussed. Gaps in SME financing were discussed in relation Stiglitz and Weiss (1981) credit rationing theory which advocates that agency problems and asymmetric information are the main reasons for the credit rationing behaviours of credit providers to Construction SMEs. This paper is a review to identify gaps in literature regarding the financing of Construction SMEs in South Africa. It is revealed that access to credit by Construction SMEs is still a major challenge impeding the realisation of the full potential of construction SMEs as engines of poverty alleviation, employment creation and economic growth at large. Therefore it is recommended that policy recommendations aimed at solving access to credit challenges must be empirically tested on a regular basis and progress in that regard must be constantly monitored and revised to reduce the problem
- Full Text: false
Thematic analysis of challenges faced by small and medium construction companies in accessing credit in South Africa
- Balogun, O.A., Agumba, J.N., Ansary, N.
- Authors: Balogun, O.A. , Agumba, J.N. , Ansary, N.
- Date: 2015
- Subjects: Small and medium construction company , South Africa , Credit facilities
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/17452 , uj:15885 , 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.
- Full Text: false
- Authors: Balogun, O.A. , Agumba, J.N. , Ansary, N.
- Date: 2015
- Subjects: Small and medium construction company , South Africa , Credit facilities
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/17452 , uj:15885 , 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.
- Full Text: false
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