Assessment of credit accessibility to construction SMEs in the South African construction industry using binary logistic regression
- Authors: Balogun, Olanrewaju Abdul , Ansary, Nazeem , Agumba, Justus
- Date: 2016
- Subjects: Construction SMEs , Credit accessibility , Gauteng
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/214938 , uj:21344 , Citation: Balogun, O.A., Ansary, N & Agumba, J. 2016. Assessment of credit accessibility to construction SMEs in the South African construction industry using binary logistic regression.
- Description: Abstract: Unavailability of credit, especially trade credit, is one of the primary reasons for high failure rate of construction SMEs. This paper empirically investigates the determinants of trade credit to construction small and medium enterprises (SMEs) in the Gauteng Province of South Africa. The data were obtained through questionnaire survey from 179 small and medium contractors who were conveniently sampled in the Gauteng province. Data analysis was done using Statistical Package for the Social Sciences (SPSS) version 22 software. Results indicated that managerial competency, the availability of business plan, relationship with financial institutions, location of the firm, firm size, firm tax number and incorporation are significant determinants of credit accessibility in South Africa. These findings could be useful to construction SMEs in identifying and accessing trade credit from financial institutions.
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An investigation into credit accessibility for small and medium scale enterprise in construction industry of Gauteng province in South Africa : literature review
- Authors: Balogun, Olanrewaju Abdul , Ansary, Nazeem , Agumba, Justus Ngala , Aigbavboa, Clinton , Thwala, Wellington Didibhuku
- Date: 2017
- Subjects: Credit accessibility , Small and medium construction enterprise , South Africa
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/243782 , uj:25200 , Citation: Balogun, O.A. et al. 2017. An investigation into credit accessibility for small and medium scale enterprise in construction industry of Gauteng province in South Africa : literature review.
- Description: Abstract: This paper focuses on determining the socio-economic and demographic factors that predict credit accessibility from financial institutions (banks) in South Africa. Data was obtained through, questionnaire survey from 179 small and medium enterprises (SMCEs) who were conveniently sampled. The questionnaire was developed from literature review. The socioeconomic and demographic determinants predicting credit accessibility were identified. The data was analysed using statistical package for the social sciences (SPSS) version 22.The results indicate that credit was predicted by age group, current position in the organization, tax number and location. The gender of the respondent, type of business ownership and collateral (security). This study informs SMCEs owners and managers to provide, their age, current position in the organization when applying for credit. Furthermore, they should provide the tax number and the location of the business in order for them to obtain credit from banks.
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