Abstract
The aim of this study is to empirically examine the relationships between the determinants of start-up SME success, namely start-up awareness and management skills, and the finance suppliers. This study has proposed a framework that improves the ability of start-up SMEs to access external finance. Through descriptive and inferential statistical analyses of data from a survey of a sample of SMEs in South Africa, it was ascertained that the framework which maps the entrepreneur’s start-up awareness and requisite management skills with the finance providers’ requirements will make up a tool to assist start-up SMEs in developing optimal financing options to grow their businesses.
Highlights
There is financial support for Small and medium-sized enterprises (SMEs), access to the various sources of finance remains problematic and a challenge for SME start-ups
The results t = 2.669, p-value = 0.009). This finding implies of the path coefficient, the interpretation of the that start-up awareness in South Africa (SA) can possibly exstated hypotheses with their corresponding factor plain about 26.9% of the entrepreneurs’ desire loadings, the probability value (P-value), as well as to choose government as the first source of enthe outcome of their respective relationships are terprise finance, compared to personal/social fialso presented in Table 7 provided
The study found that the majority of the start-up SMEs are aware of external funding sources, the greatest challenge to accessing these funding is the complicated application procedure for both government grands and bank financing, followed by the bank interest rates that are generally perceived as high despite the bank or the sector of the business
Summary
There is financial support for SMEs, access to the various sources of finance remains problematic and a challenge for SME start-ups. Three external sources of finance for SME start-ups are explored, namely, Government grants, commercial bank funds, and private equity finance. The funding requirements of these financial institutions are identified and analyzed, and a framework is proposed that improves the ability of start-up SMEs to access external finance.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
