Skip to main content
SpringerLink
Log in
Book cover

International Conference on Applied Human Factors and Ergonomics

AHFE 2017: Advances in Human Factors, Business Management and Leadership pp 229–240Cite as

Determinants of Business Overdraft Accessibility Within Small and Medium-Sized Enterprises in the South African Construction Industry: A Case of Gauteng Province

  • Conference paper
  • First Online:

  • 2331 Accesses

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 594))

Abstract

Small and medium construction enterprises (SMEs) are an important vehicle to drive the economic growth globally. However, this enterprise sector have been constrained by different factors that stifle there full participation in the mainstream economy specially finance accessibility. There is paucity of research to verify the determinants that predict business overdraft accessibility from financial banks in South Africa. The data was obtained using questionnaire survey. 179 small and medium contractors responded from conveniently sampled respondents in Gauteng province in South Africa. The data was analysed using Statistical Package for the Social Sciences (SPSS) version 22. The study found that the dependant variable i.e. business overdraft was only predicted with locality of the business. However, the other independent variables modelled with business overdraft i.e. gender, age group, current position, type of organization ownership, tax number and collateral were not good predictors of the business overdraft accessibility. The finding informs financial institutions not to force clients to submit collateral before awarding credit to the SMEs. The suggested model that was tested attained the Hosmer and Lemeshow Test goodness of fit. Hence, the results were credible. However, a further study is proposed for the entire country as the researchers acknowledge limitation on the locality of study. This will enable the researchers to generalize the findings.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. National Small Business Act: Number 29 of 2004 Republic of South Africa (2004). http://www.info.gov.za/view/DownloadFileAction?id=67967. Accessed 18 Apr 2016

  2. Department of Public Works: White paper on Creating an Enabling Environment for Reconstruction Growth and Development in the Construction Industry, Government Printers, Republic of South Africa (1999). http://www.info.gov.za/whitepaper/1999/environment.htm. Accessed 01 Feb 2015

  3. Martin, L.: Challenges faced by South African emerging contractors- review and update. In: Proceedings of the Construction, Building and Real Estate Research conference of Royal Institute of Chartered Surveyors, Dauphine Universite, Paris, France, 2–3 September 2010

    Google Scholar 

  4. Construction Industry Development Board: Construction Health and Safety in South Africa, Status and Recommendations, Pretoria, South Africa (2008)

    Google Scholar 

  5. Fatoki, O.: Factors influencing the financing of business start-ups by commercial banks in South Africa. Mediterr. J. Soc. Sci. 5(20), 94–100 (2014)

    Google Scholar 

  6. Agumba, J.N., Adegoke, I.O., Otieno, F.A.O.: Evaluating project management techniques in small and medium enterprises delivering infrastructure in South Africa Construction Industry. In: Proceedings of 3rd Postgraduate Conference 2005, Construction Industry Development, Eskom Convention Center, Midrand (2005)

    Google Scholar 

  7. Grimsholm, E., Poblete, L.: Internal and external factors hampering SME growth-a qualitative case study of SMEs in Thailand. Unpublished masters thesis, Gotland University (2011)

    Google Scholar 

  8. Mandell, L.: The Credit Card Industry: A History. Twayne Publishers, Boston (1994)

    Google Scholar 

  9. Aduda, J., Magutu, O.P., Wangu, G.M.: The relationship between credit scoring practices by commercial banks and access to credit by small and medium enterprises in Kenya. Int. J. Humanit. Soc. Sci. 2(9), 203–213 (2012)

    Google Scholar 

  10. Directors Breifing: Overdrafts and bank loans (n.d.). http://www.icaew.com/~/media/corporate/files/library/collections/online%20resources/briefings/directors%20briefings/fi1overd.ashx. Accessed 05 Aug 2016

  11. Standard Bank South Africa (n.d.). https://www.standardbank.co.za/secure/applications/wcf/overdraft_form.html. Accessed 05 Aug 2016

  12. First National Bank: Business overdraft (n.d.). https://www.fnb.co.za/business-banking/accounts/overdraft.html. Accessed 05 Aug 2016

  13. Standard Bank South Africa: Business overdraft (n.d.). http://www.standardbank.co.za/standardbank/Business/Loans-and-finance/Business-Overdraft. Accessed 05 Aug 2016

  14. Alhassan, F., Sakara, A.: Socio-economic determinants of Small and Medium Enterprises (SMEs) access to credit from the Barclays Bank in Tamale-Ghana. Int. J. Humanit. Soc. Sci. Stud. I–II, 26–36 (2014)

    Google Scholar 

  15. Bondinuba, F.W.: Exploring the challenges and barriers in accessing financial facilities by small and medium construction firms in Ghana. Civil Environ. Res. 2(6), 25–35 (2012)

    Google Scholar 

  16. Nkuah, K.J., Tanyeh, P.J., Gaeten, K.: Financing small and medium enterprises (SMEs) in Ghana: challenges and determinants in accessing bank credit. Int. J. Res. Soc. Sci. 2(3), 12–25 (2013)

    Google Scholar 

  17. Angela and Motsa Associates: SMME Finance Sector Background Paper: A Review of key documents on SMME Finance 1994–2004. Fin Mark Trust, Johannesburg (2004)

    Google Scholar 

  18. Kayanula, D., Quartey, P.: The Policy Environment for Promoting Small and Medium-Sized Enterprises in Ghana and Malawi, Finance and Development Research Programme, Working Paper Series, Paper No 15, IDPM, University of Manchester (2000)

    Google Scholar 

  19. Etonihu, K.I., Rahman, S.A., Usman, S.: Determinants of access to agricultural credit among crop farmers in a farming community of Nasarawa State, Nigeria. J. Dev. Agric. Econ. 5(5), 192–196 (2013)

    Google Scholar 

  20. Chauke, P.K., Motlhatlhana, M.L., Pfumayaramba, T.K., Anim, F.D.K.: Factors influencing access to credit: a case study of smallholder farmers in the Capricorn district of South Africa. Afr. J. Agric. Res. 8(7), 582–585 (2013)

    Google Scholar 

  21. Ololade, R.A., Olagunju, F.I.: Determinants of access to credit among rural farmers in Oyo State, Nigeria. Glob. J. Sci. Front. Res. Agric. Vet. Sci. 13(2), 17–22 (2013)

    Google Scholar 

  22. Fatoki, O., Odeyemi, A.: which new small and medium enterprises in South Africa have access to bank credit? Int. J. Bus. Manag. 5(10), 128–136 (2010)

    Article  Google Scholar 

  23. Dzadze, P., Osei Mensah, J., Aidoo, R., Nurah, G.K.: Factors determining access to formal credit in Ghana: a case study of smallholder farmers in the Abura-AsebuKwamankese district of central region of Ghana. J. Dev. Agric. Econ. 4(14), 416–423 (2012)

    Google Scholar 

  24. Kimutai, C.J., Ambrose, J.: Factors influencing credit rationing by commercial banks in Kenya. Int. J. Humanit. Soc. Sci. 3(20), 244–252 (2013)

    Google Scholar 

  25. Beck, T., Asli, D.-K., Maria, S.M.P.: Bank Financing for SMEs around the World: Drivers, Obstacles, Business Models, and Lending Practices, Policy Research Working Paper 4785. World Bank, Washington, D.C. (2008)

    Google Scholar 

  26. Musamali, M.M., Tarus, K.D.: Does firm profile influence financial access among small and medium enterprises in Kenya? Asian Econ. Fin. Rev. 3(6), 714–723 (2013)

    Google Scholar 

  27. Creswell, J.W.: Research Design, Qualitative and Quantitative Approaches. Sage, London (1994)

    Google Scholar 

  28. Pallant, J.: SPSS Survival Manual: A Step-By-Step Guide to Data Analysis Using SPSS, version 15, 3rd edn. Open University Press, New York (2007)

    Google Scholar 

  29. Pallant, J.: SPSS, Survival Manual: A Step-By-Step Guide to Data Analysis Using IBM, SPSS, 5th edn. Allen & Unwin, Sydney, Melbourne, Auckland, London (2013)

    Google Scholar 

  30. Agumba, N.J.: Evaluating the use of project management techniques in infrastructure delivery by South African small and medium sized contractors. Unpublished Masters Dissertation, Faculty of Engineering and the Built Environment, University of Johannesburg, South Africa (2006)

    Google Scholar 

  31. Kira, R.A., He, Z.: The impact of firm characteristics in access of financing by small and medium-sized enterprises in Tanzania. Int. J. Bus. Manag. 7(24), 108–119 (2012)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Construction Management and Quantity Surveying, University of Johannesburg, Doornfontein Campus, Johannesburg, South Africa

    Olanrewaju Abdul Balogun & Nazzem Ansary

Authors
  1. Olanrewaju Abdul Balogun
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Nazzem Ansary
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Olanrewaju Abdul Balogun .

Editor information

Editors and Affiliations

  1. Belgafik Oy, University of Vaasa, Vaasa, Finland

    Jussi Ilari Kantola

  2. University of Szeged, Szeged, Hungary

    Tibor Barath

  3. Institute of Maritime Operations, University College of Southeast Norway, Borre, Norway

    Salman Nazir

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer International Publishing AG

About this paper

Cite this paper

Balogun, O.A., Ansary, N. (2018). Determinants of Business Overdraft Accessibility Within Small and Medium-Sized Enterprises in the South African Construction Industry: A Case of Gauteng Province. In: Kantola, J., Barath, T., Nazir, S. (eds) Advances in Human Factors, Business Management and Leadership. AHFE 2017. Advances in Intelligent Systems and Computing, vol 594. Springer, Cham. https://doi.org/10.1007/978-3-319-60372-8_22

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-60372-8_22

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-60371-1

  • Online ISBN: 978-3-319-60372-8

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation