State financial assistance within Lesotho Maseru’s small, medium and micro enterprises

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Small, Medium and Micro Enterprises (SMMEs) function in both the micro and macro environments, and are subject to internal and external forces in most economies. The monitoring of the external and internal factors and vital strategies by SMME owners and stakeholders including government and supporting institutions is necessary to attempt a reduction in their failure rates. Literature supports this proposition in the development of SMMEs.
The aim of this study was to analyze the environmental factors that result in a low rate of success and a high failure rate of SMMEs in Maseru the capital city of Lesotho. Primary data for this study was collected through questionnaires which were distributed to a sample of 250 SMMEs owners, however, only 180 respondents completed and returned questionnaires, which were then used for data analysis. The data was analyzed using the Statistical Package for Social Sciences (SPSS21). The findings revealed that there still persists inadequacy in financial assistance and the need to develop a financial strategy by the state. Government key intervention is proposed to enable growth and development in a sector that sustains job creation and poverty reduction through financial strategy. Further research on how the sector establishes support is also proposed.

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    • Table 1. Age * How did you obtain the start-up capital for your business? Cross tabulation
    • Table 2. Correlations
    • Table 3. Registration with OBFC * How did you obtain the start-up capital for your business?
    • Table 4. Correlations
    • Table 5. Are you aware of the financial institutions assisting SMMEs? *Was your request (loan) approved? Cross tabulation
    • Table 6. Correlations
    • Table 7. Gender
    • Table 8. How did you obtain the start-up capital for your business?
    • Table 9. Test statistics
    • Table 10. Are you aware of the financial institutions assisting SMMEs?
    • Table 11. If yes, have you tried applying for assistance of start-up capital from such institutions?
    • Table 12. Test statistics
    • Table 13. Ranks
    • Table 14. Test statistics