An empirical study of optimal access to external finance by small and medium enterprise start-ups
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DOIhttp://dx.doi.org/10.21511/ppm.17(3).2019.20
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Article InfoVolume 17 2019, Issue #3, pp. 242-258
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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.
- Keywords
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JEL Classification (Paper profile tab)M13
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References62
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Tables7
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Figures2
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- Figure 1. Structural model results
- Figure 2. Financing framework for SME’s access to external finance
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- Table 1. Determinants of start-up business success
- Table 2. Correlation between the constructs
- Table 3. Scale accuracy
- Table 4. Model fit summary
- Table 5. Coefficient of determination (R2)
- Table 6. VIF results in the structural model
- Table 7. Hypothesis test results
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