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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Factors influencing credit accessibility for small and medium company in South Africa's construction industry : a literature review
- 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
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Investigating challenges and barriers facing construction of small, medium-sized enterprises in credit accessibility in the South African construction industry
- Authors: Balogun, O.A. , Ansary, N. , Agumba, J.N.
- Date: 2016
- Subjects: Credit accessibility , Challenges , Construction SMEs
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/215071 , uj:21360 , Citation: Balogun, O.A., Ansary, N & Agumba, J.N. 2016. Investigating challenges and barriers facing construction of small, medium-sized enterprises in credit accessibility in the South African construction industry.
- Description: Abstract: This study sought to investigate the challenges and the barriers facing Small and Medium –Sized Enterprises in South Africa construction industry in their quest to access credit from financial institutions for their business purposes. This study utilizes a combination of primary data emanating from structure survey questionnaires supplemented by secondary source of data from an extensive literature review, in order to present insightful commentary about credit accessibility with Construction SMEs in South Africa. The study was a cross-sectional survey that used semi-structured questionnaire to collect data from the sample. 50 questionnaires were distributed to Construction Company in Gauteng Province in in Johannesburg through a convenience sampling technique. The key barriers were identified include informational barriers, lack of managerial ability within construction SMEs. Limitation of the study have been note and recommendations for developing innovative approaches to making credit accessibility to construction SMEs in South African been discussed. The study contributes to the body of knowledge in the area of financing construction firm in developing countries in general, and in South Africa in particular.
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