The accessing of finance by Small Medium Micro Enterprises in the Mafikeng

Abstract

The research study investigates some of the problems or challenges faced by SMMEs in the Mafikeng and Mmabatho area of the North West province. It strives to find out the extent to which these problems occur and the impact they have on these businesses. The research focuses on a number of major problems considered to be hindering the growth of SMMEs in this area, namely the lack of entrepreneurial management, financial skills, accessing finance and the role played by lack of financial and mentoring support on the success or failure of SMMEs. Some of the significant findings of this study are that the majority of the businesses fail because of lack of access to finance, lack of entrepreneurial skills and lack of mentoring support from the government. The government and banks should make it easer for SMMEs to access finance. The government should act as collateral for SMMEs to secure finance from commercial institutions. The government should involve the private sector in training SMMEs to acquire entrepreneurial skills. This will help SMMEs to run their businesses professionally and therefore become sustainable. This will impact positively to the economic growth, in terms of job creation to the entire province.