Access to Debt Finance by Young Entrepreneurs in Polokwane, South Africa. (1st October 2016)

• Record Type: Journal Article
• Authors: Rector, Moliwa; Fatoki, Olawale; Oni, Olabanji
• Is Part Of: Journal of social sciences. Volume 49:Number 1-2(2016)
• Page Start: 67
• Page End: 69
• Publication Date: 2016-10-01
• Subjects: Access -- Debt Finance -- Entrepreneur -- Need -- Obstacles -- Young; Social sciences -- Periodicals; 300.5
• DOI: 10.1080/09718923.2016.11893598
• Languages: English
• ISSNs: 0971-8923

Abstract

Abstract: The paper investigated the need for and access to debt finance by young entrepreneurs. In addition, the study examined the obstacles to access to debt finance by young entrepreneurs. This study was conducted at Polokwane, South Africa. Forty nine young SME owners participated in the study. Convenience and snowball methods were used to select the study participants. The self-administered questionnaire method was used for data collection. Descriptive statistics was used for data analysis. The results indicated that although there is a strong need for external debt finance by young entrepreneurs, however, access to debt finance is limited. Obstacles to debt finance by young entrepreneurs include lack of collateral and bad credit history. Recommendations to improve access to debt finance by young entrepreneurs are suggested.