Journals Proceedings

International Journal of Business and Management Study

Access To Bank Finance among SMMEs in A Developing Country: Does Gender Play A Role?



Accessibility of funds to finance SMMEs is regarded as a key factor that contributes towards the success of businesses. Research, however, reveals that most owners of these ventures are confronted by several barriers in securing funds to run their businesses. Included in the factors is gender, whereby it is posited that woman business owners experience greater challenges than men owners in accessing financial capital. This research investigated whether men are more likely to secure loans than their woman counterparts, as well as finding reasons for the rejection of bank finance. It was found that a quarter of SMMEs applied for bank finance and that gender does not play a role is securing such finance. It also highlighted that lack of financial management knowledge have an impact on the approval of bank loans. Lack of collateral still features as the main reason for rejection of bank loan. It is recommended that banks become more involved in marketing their services to SMMEs and to educate SMMEs on financial management.

No fo Author(s) : 1
Page(s) : 261 - 272
Electronic ISSN : 2372-3955
Volume 3 : Issue 1
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