In South Africa an unacceptable and disappointingly high number of SMMEs fail during the first few years of operation. They face various challenges. Inaccessibility of bank finance is one of the major challenges that South African SMMEs face among others. The largest percentage of SMMEs fails during the first two years of their existence due to cash flow problems that arise because they could not manage growth. Cash flow problems can occur as a result of inaccessibility of bank finances.
Unemployment in the Eastern Cape Province and South Africa at large is a challenge faced by the nation and SMMEs can play a major role in curbing this problem. SMMEs need to be supported and they also need to be able to access resources they need to survive and grow. Inaccessibility of bank finance is a real challenge faced by SMMEs and the cause of this challenge needs to be investigated so as to come up with relevant solutions that can contribute to the success of South African SMMEs.
