SMEs’ Information Infrastructure and Access to Finance

Nirmala Dorasamy () and Eustache Tanzala Kikasu
Additional contact information
Nirmala Dorasamy: Durban University of Technology
Eustache Tanzala Kikasu: Durban University of Technology

Chapter Chapter 7 in SMEs Perspective in Africa, 2024, pp 121-166 from Springer

Abstract: Abstract Many economies worldwide remain heavily dependent on SMEs, particularly for their role and contribution, which remains globally an important source of employment creation opportunities and poverty reduction (Kreslins et al., 2018; Ackah & Vuvor, 2011; Nejadirani et al., 2011). Despite these great prospects that SMEs provide in terms of socio-economic development, challenges facing Small and Medium Enterprises are many, whether globally or typically in the entire African continent. In general, challenges such as the ability to adapt to rapidly changing market demands; technological changes and capacity constraints relating to knowledge; innovation and creativity; lack of resources (limited access to finance, technology, skilled labour, market access, and market information); lack of economies of scale and scope; higher transaction costs relative to large enterprises; lack of networks that can contribute to a lack of information and experience of domestic and international markets; increased market competition and concentration from large multinational enterprises caused by globalisation and economic integration; inability to compete against larger firms in terms of R&D expenditure and innovation (product, process, and organisation); subject to churning and instability; lack of entrepreneurial zeal, capacity, and know-how; lack of databases; insufficient use of information technology; low R&D expenditures; and undeveloped sales channels and low levels of financial inclusion are amongst the critical barriers affecting the growth of SMEs in various world countries (Yoshino & Hesary, 2016).

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-69103-4_7

Ordering information: This item can be ordered from
http://www.springer.com/9783031691034

DOI: 10.1007/978-3-031-69103-4_7

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().