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SMME attitudes towards financial bootstrapping: A perspective from a developing economy

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  • Bonginkosi Keith Zwane,
  • Celani John Nyide

Abstract

The national and international literature and research on SMMEs has been developed very strongly in the last decade. There have been many successful attempts on the part of many researchers and scholars to unpack new and innovative dimensions of SMMEs’ operations, behaviour, attitudes, functions and other dynamics that boost, sustain or impede their growth and development. There is, however, a gap in research, regarding a very distinct practice within SMMEs in developing economies, that of bootstrapping. This study, therefore, used a sample chosen on a non-probability basis using convenience sampling of small business owners within the eThekwini Municipality, KwaZulu-Natal, South Africa. 83 participants completed the questionnaire. The study found that the practice of financial bootstrapping was very high amongst the investigated SMMEs. The use of financial bootstrapping within SMMEs is coincidental. The majority of the respondents indicated that they did not undergo any formal training on the use of financial bootstrapping methods.

Suggested Citation

  • Bonginkosi Keith Zwane, & Celani John Nyide, 2017. "SMME attitudes towards financial bootstrapping: A perspective from a developing economy," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(3), pages 347-356, July.
    • Handle: RePEc:pdc:jrnbeh:v:13:y:2017:i:3:p:347-356
    DOI: 10.15208/beh.2017.25
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    References listed on IDEAS

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    1. Juan-Pierré BRUWER & André VAN DEN BERG, 2017. "The conduciveness of the South African economic environment and Small, Medium and Micro Enterprise sustainability: A literature review," Expert Journal of Business and Management, Sprint Investify, vol. 5(1), pages 1-12.
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    4. John O. Okpara, 2011. "Factors constraining the growth and survival of SMEs in Nigeria," Management Research Review, Emerald Group Publishing Limited, vol. 34(2), pages 156-171, January.
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    More about this item

    Keywords

    Developing economy; financial bootstrapping; SMMEs;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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