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Capital structure decision making for SMMEs in the South African context
Mini Dissertation (MBA)--University of Pretoria, 2017.
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| Other Authors: | |
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2017
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| _version_ | 1867613522513362944 |
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| access_status_str | Open Access |
| author2 | Lew, Charlene |
| author_browse | Lew, Charlene |
| author_facet | Lew, Charlene |
| collection | Thesis |
| dc_rights_str_mv | © 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. |
| description | Mini Dissertation (MBA)--University of Pretoria, 2017. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/59880 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:29.335Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/59880 Capital structure decision making for SMMEs in the South African context Lew, Charlene ichelp@gibs.co.za Mogashoa, Mogori Thomas UCTD Mini Dissertation (MBA)--University of Pretoria, 2017. The purpose of this study is to explore how managers of SMMEs make capital structure decisions for their firms in the South African context. The study is a qualitative and is grounded in interpretivism. The literature unpacked pecking order and trade off theories and together with taxation and profitability they were explored in research questions posed to SMME managers during semi-structured interviews. The findings in this study is that SMME managers find the notion of taking up debt for the sake of the tax incentive to be counter intuitive, debt repayments become an expense that erode the firm's profitability and also exposes the firm to potential bankruptcy. The notion of borrowing without a business purpose, presents a challenge to managers. Business objectives thus present the most compelling determinant of capital structure decision making in this study. Pecking order theory is supported by the findings in this study. This study finds that the Trade off theory has no standing on capital structure decision making in SMMEs and managers explore alternative funding methods such as loan accounts. The implications of this study include a call for academia to undertake descriptive studies to pursue these findings. Development of succinct business objectives will assist SMMEs bridge the gap between themselves and funding institutions. ms2017 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2017-04-07T13:06:11Z 2017-04-07T13:06:11Z 2017-03-30 2017 Mini Dissertation Mogashoa, MT 2017, Capital structure decision making for SMMEs in the South African context, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/59880> http://hdl.handle.net/2263/59880 en © 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Capital structure decision making for SMMEs in the South African context |
| title | Capital structure decision making for SMMEs in the South African context |
| title_full | Capital structure decision making for SMMEs in the South African context |
| title_fullStr | Capital structure decision making for SMMEs in the South African context |
| title_full_unstemmed | Capital structure decision making for SMMEs in the South African context |
| title_short | Capital structure decision making for SMMEs in the South African context |
| title_sort | capital structure decision making for smmes in the south african context |
| topic | UCTD |
| url | http://hdl.handle.net/2263/59880 |