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Title: Factors affecting small and medium enterprises’ financial sustainability in South Africa
Authors: Olarewaju, Odunayo 
Msomi, Thabiso 
Keywords: Financial deficiency;Small businesses;Economic stability;Financial training and development;Financial access
Issue Date: 2021
Publisher: Durban University of Technology
Source: Olarewaju, O. and Msomi, T. 2021. Factors affecting small and medium enterprises’ financial sustainability in South Africa. African Journal of Inter/Multidisciplinary Studies. 3(1): 103-117. doi:10.51415/ajims.v3i1.893
Journal: African Journal of Inter/Multidisciplinary Studies; Vol. 3, Issue 1
The dwindling growth of small businesses and their rate of failure in South Africa has been traced to poor financing. Thus, the factors affecting the financial sustainability of small and medium-sized enterprises in South Africa are examined in this study. Using purposive sampling, data were collected from 310 respondents, however six were incorrectly completed. The analysis was based on data collected from 304 respondents which cut across owners and/or managers from small and medium construction, manufacturing, retail, and agricultural enterprises. A quantitative research design that falls under the positivist paradigm was used. Specifically, through a descriptive and multivariate regression analysis, it was found that financial awareness, budgeting, accounting skills, and access to finance have positive and significant effects on the financial sustainability of SMEs with all the variables, having 0.005 probability values, respectively. Out of all the variables examined, budgeting and access to finance have the largest absolute values of 0.425 and 0.373, respectively. Thus, it was concluded that workshops, training, and seminars to improve the financial literacy of small and medium enterprises should be organised. This will improve owner’s ability to deploy the accounting and budgeting skills and they will be exposed to meeting loan criteria and conditions from financial institutions. Also, adequate funds should be allocated to cater for the regular training and development of small business owners using the services of financial experts.
ISSN: 2663-4597
2663-4589 (Online)
DOI: 10.51415/ajims.v3i1.893
Appears in Collections:Research Publications (Accounting and Informatics)

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