Optimizing access to external finance by small and medium-sized enterprise start-ups: Towards the development of a conceptual framework

Journal of Governance and Regulation

article

Nkombe Herman Bamata¹  Maxwell Agabu Phiri¹ 

[1] School of Management, Information Technology and Governance, University of KwaZulu-Natal

关键词: Entrepreneur;    Entrepreneurship;    New Enterprise;    New Firm Growth;    Start-Up;    Start-Up Financing;    Management Skills;    Start-Up Awareness;   

DOI  :  10.22495/jgrv11i1art12

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This study aims to experimentally analyse how start-up awareness, management skills, and financial providers’ requirements relate to the key drivers of business success. A framework has been developed to increase start-ups’ capacity to obtain external financing (Bamata, 2019). Data were collected by a simple random sample from a survey of 253 SMEs in Pietermaritzburg, South Africa. Data analyses from the questionnaire using the statistical program SmartPLS were carried out utilizing descriptive and inferential analyses and structural equation modelling. It was shown that start-up awareness and management skills positively affect SMEs’ access to government, corporate, and personal/social sources of financing. Seven hypothetical connections were evaluated, and the results were obtained. The suggested framework maps the entrepreneurial awareness and management abilities of a start-up entrepreneur with funding provider needs and gives an idea of the type and optimum funding choices to be applied for the company (Bamata, Govender, & Fields, 2019). By utilising this framework, SME owner-managers would become aware of their financing needs and be ready to choose the most suitable source of external finance.

【 授权许可】

CC BY-NC