Evaluating access to information, access to finances, firm competition and small medium enterprise performance in South Africa

Abstract

At the center of poor performance of SME is lack of access to information, inaccessibility of finances and lack of firm competitiveness. Hence this study evaluates the access to Information, access to finances, firm competition and Small Medium Enterprise performance in South Africa. This employed a quantitative approach which was supported by the positivist paradigm. The study used the sample size of 140 SMEs. SME owners or suitable representative were selected using the purposive sample technique. The results of the study revealed a positive correlation between access to information, access to finances and SME performance. On the other hand, a negative correlation between firm competition and SME performance was observed. The study recommended that financial institution should remove the limit on the amount of money the SME may borrow if they have appropriate collateral. Also, financial institutions should employ realistic loan repayment procedures in order to attract more clients and so enhance credit access. Finally, the research and the study urge that the government consider providing incentives for SMEs by holding workshops, seminars, and conferences to strengthen SMEs management abilities and keep them up to speed on continuous learning available in the market that would boost performance.