Document Type Master's Dissertation Author Sefolo, Boitumelo URN etd-07032011-130919 Document Title South African banks' risk assessment practices when financing entrepreneurial ventures : a comparative analysis Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Ms L Sing Supervisor Keywords
- entrepreneurial funding
Date 2010-11-10 Availability unrestricted Abstract
The development of Small, Medium and Micro Enterprises (SMMEs) contributes significantly to job creation, social stability and economic welfare. Obtaining finance for start-up and growing entrepreneurial ventures has proved to be crucial for SMME growth and is therefore the prime concern of this research. This research will specifically investigate the risk assessment practices used by South African commercial banks when providing funding to entrepreneurial ventures.
In addition, the research seeks to establish whether there is consistency amongst the South African commercial banks in their risk assessments practices. Lastly to establish the impact of the global economic crisis of 2008 on the risk assessment practices of the South African commercial banks. To achieve this, a qualitative study in the form of expert interviews supported by structured research questionnaires with representatives of the four large banks was undertaken.
In summary, the findings of the research demonstrated that risk assessment practices of the South African commercial banks were consistent with the integrated theoretical framework and amongst each other. Respondents ranked the character, capacity and collateral of the business as the most important criteria when assessing term loan applications. Furthermore, the impact of the global economic crisis of 2008 resulted in the lending policies of the banks being more strictly adhered to.
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Please cite as follows:
Sefolo, B 2010, South African banks' risk assessment practices when financing entrepreneurial ventures : a comparative analysis, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07032011-130919/>
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