IDEAS home Printed from https://ideas.repec.org/p/sek/ibmpro/5607468.html
   My bibliography  Save this paper

SMME attitudes towards Financial Bootstrapping: A perspective from a developing economy

Author

Listed:
  • Bonginkosi Zwane

    (Mangosuthu University of Technology)

  • Celani Nyide

    (Durban University of Technology)

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 Zwane & Celani Nyide, 2017. "SMME attitudes towards Financial Bootstrapping: A perspective from a developing economy," Proceedings of Business and Management Conferences 5607468, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:ibmpro:5607468
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/6th-business-management-conference-geneva-56/table-of-content/detail?cid=56&iid=021&rid=7468
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Janine Kruger & Rootman Chantal & Shelley Saunders, 2015. "Macro-economic factors influence on South African SMME business performance," Proceedings of International Academic Conferences 2805126, International Institute of Social and Economic Sciences.
    2. Grichnik, Dietmar & Brinckmann, Jan & Singh, Luv & Manigart, Sophie, 2014. "Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities," Journal of Business Venturing, Elsevier, vol. 29(2), pages 310-326.
    3. Lars Löfqvist, 2017. "Product Innovation In Small Companies: Managing Resource Scarcity Through Financial Bootstrapping," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-27, February.
    4. 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.
    5. Sara Jonsson & Jessica Lindbergh, 2013. "The Development of Social Capital and Financing of Entrepreneurial Firms: From Financial Bootstrapping to Bank Funding," Entrepreneurship Theory and Practice, , vol. 37(4), pages 661-686, July.
    6. Watson Munyanyi, 2015. "Winborg and Landstrom’s Financial Bootstrapping Strategies and Zimbabwean Rural Entrepreneurs," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(7), pages 289-299, July.
    7. 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.
    8. Michael C. Cant & Cindy Erdis & Catherine M. Sephapo, 2014. "Business Survival: The Constraints Experienced by South African SMEs in the Financial Sector," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 565-579, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zwane, Bonginkosi Keith & Nyide, Celani John, 2017. "SMME attitudes towards financial bootstrapping: A perspective from a developing economy," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(3).
    2. 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.
    3. Mansi Singh & Sanjay Dhir & Harsh Mishra, 2024. "Synthesizing research in entrepreneurial bootstrapping and bricolage: a bibliometric mapping and TCCM analysis," Management Review Quarterly, Springer, vol. 74(1), pages 487-520, February.
    4. Juan-Pierrà Bruwer & Judith Smith, 2018. "The Role of Basic Business Skills Development and Their Influence on South African Small, Medium and Micro Enterprise Sustainability," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 48-62.
    5. Dragos Ilie, 2015. "Credits and Bank Guarantee Letters in Entrepreneurship Development During Crisis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 212-212, February.
    6. Manolova, T. & Shirokova, G. & Tsukanova, T. & Edelman, L., 2014. "The impact of family support on young nascent entrepreneurs's start-up activities: A family embeddedness perspective," Working Papers 6381, Graduate School of Management, St. Petersburg State University.
    7. Albert Tchey Agbenyegah, 2019. "A Comparative Study of Rural Entrepreneurial Challenges: Towards Rural Economic Development and a Policy Framework," Journal of Economics and Behavioral Studies, AMH International, vol. 11(3), pages 58-71.
    8. Yami, Saïd & M'Chirgui, Zouhaier & Spano, Claude & Gontier Barykina, Olga, 2021. "Reinventing science and technology entrepreneurship education: The role of human and social capitals," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    9. Zakia Jabeen & Jabir Ali & Nadia Yusuf, 2021. "Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 71-81, December.
    10. Iovino, Felicetta & Migliaccio, Guido, 2019. "Energy companies and sizes: An opportunity? Some empirical evidences," Energy Policy, Elsevier, vol. 128(C), pages 431-439.
    11. ONIFADE Stephen Taiwo & ACET Hakan & ÇEVİK Savaş, 2022. "Modeling The Impacts Of Msmes' Contributions To Gdp And Their Constraints On Unemployment: The Case Of African’S Most Populous Country," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 154-170, April.
    12. Dharmani, Pranav & Das, Satyasiba & Prashar, Sanjeev, 2021. "A bibliometric analysis of creative industries: Current trends and future directions," Journal of Business Research, Elsevier, vol. 135(C), pages 252-267.
    13. Michaelis, Timothy L. & Scheaf, David J. & Carr, Jon C. & Pollack, Jeffrey M., 2022. "An agentic perspective of resourcefulness: Self-reliant and joint resourcefulness behaviors within the entrepreneurship process," Journal of Business Venturing, Elsevier, vol. 37(1).
    14. Renaud Bourlès & Anastasia Cozarenco, 2018. "Entrepreneurial motivation and business performance: evidence from a French Microfinance Institution," Small Business Economics, Springer, vol. 51(4), pages 943-963, December.
    15. Mkateko Vivian Mabunda & Ricky Munyaradzi Mukonza & Lufuno Robert Mudzanani, 2023. "The effects of loadshedding on small and medium enterprises in the Collins Chabane local municipality," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-20, December.
    16. Dmitri Knatko & Galina Shirokova & Karina Bogatyreva, 2016. "Industry choice by young entrepreneurs in different country settings: the role of human and financial capital," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(4), pages 613-627, July.
    17. Ajay K Garg & Phillip NT Phaahla, 2018. "Factors Affecting the Business Performance of Small Businesses in Sekhukhune," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 54-67.
    18. Shima Amini & Sofia Johan & Eilnaz Kashefi Pour & Abdulkadir Mohamed, 2023. "Employee Welfare, Social Capital, and IPO Firm Survival," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2174-2204, November.
    19. Manzi-Puertas, Mario A. & Agirre-Aramburu, Izaskun & López-Pérez, Sain, 2024. "Navigating the student entrepreneurial journey: Dynamics and interplay of resourceful and innovative behavior," Journal of Business Research, Elsevier, vol. 174(C).
    20. Juan-Pierré BRUWER & Mariaan LOMBARD & Yolandé SMIT & Ankit KATRODIA, 2019. "The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise," Expert Journal of Business and Management, Sprint Investify, vol. 7(1), pages 100-106.

    More about this item

    Keywords

    Developing Economy; Financial Bootstrapping; SMMEs;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:ibmpro:5607468. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.