Fifth International Conference on Advances in Computing, Communication and Information Technology - CCIT 2017
Author(s) : JUSTUS NGALA AGUMBA, NAZEEM ANSARY, OLANREWAJU ABDUL BALOGUN
Small and medium construction enterprise (SMEs) has become the significant clout of sustained, instantaneous and braci ng growth of South Africa economy. Moreover, SMEs has performed an unparallel ed role in advancing the South Africa economic growth, and serve as a breeding ground for entrepreneurs and a pr ovider of solutions to address the problems of unemployment in all consuming labours and promoting marketing growth. An opportunity for the healthy advancement of small and medium - sized enter prises (SMEs) in South Africa was in relation to the transformati on and expansion policy due to the brisk evolution of the global economy. But with the global economic integration, the small and medium - sized enterprises operating environment is facing tremendous changes and more intense competition. The data was obtaine d 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 t hat the dependant variable i.e. business bridging loan was only predicted with locality of the business. However, the other independent variables modelled with business bridging loan i.e. gender, age group, current position, type of organization ownership, tax number and collateral were not good predictors of the business bridging loan . 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 Hos mer and Lemeshow Test goodness of fit. Hence the results were credible. However, a further study is proposed for the entire country as t he researchers acknowledge limitation on the locality of study. This will enable the researchers to generalize the findi ngs.