Melvin Mothoa

Mangosuth University of Technology

A CONCEPTUAL FRAMEWORK FOR SMME ACCESS TO FINANCIAL SUPPORT

Biography

Abstract

Access to financial support remains a persistent challenge for small, micro, and medium-sized enterprises (SMMEs), particularly within South Africa’s manufacturing sector. This study adopts a convergent mixed-methods approach, integrating quantitative data from a structured survey with secondary qualitative analysis of policy documents, case studies, and peer-reviewed literature. It investigates the financial barriers encountered by manufacturing SMMEs in Gauteng and proposes an integrated conceptual framework—grounded in capital structure, credit rationing, and pecking order theories—to enhance financial accessibility. The quantitative strand of the study draws on a stratified random sample of 385 manufacturing SMMEs, analysed using SPSS® 29 to examine key determinants of financial access. Complementing this, qualitative thematic analysis of 15 publicly available sources captures the lived experiences of entrepreneurs navigating financing constraints, institutional inefficiencies, and adaptive informal financing strategies. Findings indicate that collateral requirements, inconsistent policy implementation, and rigid banking practices significantly constrain financial access. The study introduces an Integrated Support Framework that incorporates both firm-level and institutional factors including digital finance platforms, demographic variables, and stakeholder coordination. By triangulating empirical and contextual insights, the study contributes to a deeper understanding of financial exclusion and provides a strategic roadmap to foster inclusive economic growth within South Africa’s SMME sector.