Investigation of a financial model for small and medium sized contractors in South Africa

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dc.contributor.advisor W. D. Thwala en_US
dc.contributor.author Ndlovu, Sithembiso
dc.date.accessioned 2012-06-05T06:49:29Z
dc.date.available 2012-06-05T06:49:29Z
dc.date.issued 2012-06-05
dc.date.submitted 2010-06-02
dc.identifier.uri http://hdl.handle.net/10210/4841
dc.description M. Tech. en_US
dc.description.abstract The financing needs of contractors, especially emerging contractors, need to be explored. In the case of the Small, Medium and Micro-Enterprises (SMMEs’) within the contracting sector, a type of “finance-PLUS” arrangement, which sees the lender, or an intermediary, offer additional support services to emerging enterprises, would be worth exploring. There are various perspectives and opinions on the format and context of the contribution. One of these perspectives embraces the obstacles involved in the entrepreneurial process hindering contribution and economic catalisation. This study follows a focused approach towards the investigation of a financial model for small, medium sized contractors in South Africa. Interviews were conducted and questioners were sent out to different constructors who have been successful in the business for more than five years and also contractors who are currently straggling and trying to survive and grow. Conclusions will be drawn from the analysis and recommendations will be made for further study and curriculum revision, if necessary. All types of businesses need capital before and after they start operating as well as for expansion purpose. The problem is people who have been listed on credit bureaus have their records count against them when they apply for a loan. A key factor mitigating against increased investment in the SMMEs’ sector is the structure of the financial sector. The findings of the study point to the fact that conventional financing mechanisms do not allow for cost-effective provision of finance to large numbers of entrepreneurs seeking small quantities of finance. Effects of poverty and lack of assets mean that many people do not have the collateral needed to access finance. The study also found that although there are different initiatives that are in place to assist small and medium size contractors the typical problems and challenges are still existing. The scopes of this study only focused on small, medium and micro-enterprise in the built environment (specifically the construction industry). In addition, the study focuses on the different financial programmes that are currently in place. An overarching concern is that previously disadvantaged individuals do not have adequate access to credit offered by formal financial institutions and therefore are forced to seek relatively expensive (and often inadequate) amounts of credit from alternative financial sources. en_US
dc.language.iso en en_US
dc.subject Small business financing en_US
dc.subject Construction contracts en_US
dc.subject Contractors en_US
dc.subject Small enterprises en_US
dc.subject Medium enterprises en_US
dc.subject Micro enterprises en_US
dc.title Investigation of a financial model for small and medium sized contractors in South Africa en_US
dc.type Thesis en_US

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