Credit financing for SMMES in the Free State: development financing institutions versus commercial banks

[摘要] Access to credit finance is a challenge that faces SMMEs in developing economiessuch as South Africa. This challenge has been a burning issue to a number ofresearchers and policy makers alike. The development of SMMEs is importantbecause the sector is an alternative solution to unemployment reduction and povertyeradication. Without enough financial resources, achieving this developmental goalbecomes very difficult for SMMEs. The study helps to illustrate the roles played byboth private sector (banks) and public sector (OFIs) in affording SMMEs access tocredit finance. The results show that there are some challenges facing Fis thatprohibit them to achieving the goal. The study, however suggests the possiblesolutions in addressing the problem.

[发布机构] University of the Free State