Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Start-ups, especially those established out of unemployment, and existing micro businesses experience major difficulties in obtaining funds, both in the start-up or expanding process, around the world. Most entrepreneurs in start-up organisations do not have a credit history, do not possess capital or traditional collateral and lack managerial experience and qualifications. Because mainstream banks perceive them as being too small, new and risky, the required capital amounts are insufficient to cover the banks expenditures and the loan cannot be granted. The end result is that the entrepreneurs remain unemployed and cannot receive investment, which forces them to close their businesses. The banks are unable to prove their creditworthiness in the traditional way and cannot comprehend the entrepreneurs' intentions. In order to create securities and overcome this information gap microlending plays an increasingly significant role. It focuses on people with financial difficulties who are excluded from the traditional capital market. With its innovative methods of creditworthiness assessment, like peer lending, staggered loans and decreasing interest rates, an incentive system is implemented which substitutes collateral and motivates the borrower to repay the loan as scheduled. The borrowers are enabled to invest and start or expand their businesses. The living, income and education standards of people who live in South Africa, particularly in townships, are equal to conditions of a developing country. The existing infrastructure, economical and political situation, on the other hand, would rather classify South Africa as a developed country. Because of this ambivalence it is questionable whether the innovative creditworthiness assessment methods applied in developed countries like those in Europe are applicable in such an environment. In order to evaluate the applicability, the study explains what microlending is and shows its origin, characteristics, creditworthiness assessment methods, differences to traditional banks and other peculiarities. An assessment follows of how three different European microlending organisations, the so-called Microfinance Institutions, work in detail. The self-sufficient and best-practice performing Fundusz Micro in Poland, the French socially aligned Association pour Ie droit a I' initiative Economique and the German as an incubator performing Siebte Saule have been chosen. Results of a survey across Europe will provide further information on how the majority of European Microfinance Institutions have implemented their creditworthiness assessment methods before presenting the South African microlending sector. In conclusion, the applied methods in Europe are discussed in the framework of South African market; considering social, cultural and economical conditions. As assumed, the methods are applicable in general but have to be adjusted in order to be able to provide opportunities to the poorest people. / AFRIKAANSE OPSOMMING: 'Start Ups', veral die wat gestig is waar daar groot werkloosheid heers, asook bestaande mikro besighede ondervind groot probleme in die verkryging van fondse, beide in die 'start-up en uitbreidingsfase. Dit is 'n verskynsel wat dwars oor die wêreld voorkom. Meeste entrepreneurs in 'start up' organisasies het nie die kredietgeskiedenis, nodige kapitaal, tradisionele sekuriteit en/of bestuurservaring en kwalifikasies nie. Kommersiële banke beskou sulke firmas as te klein, en nuut met 'n te hoë risiko aan hulle verbonde omdat die benodigde kapitaal te min is om selfs die bank se uitgawes of die lening te dek, wat beteken dat die entrepeneurs dan werkloos bly of nie kan investeer nie. As gevolg daarvan moet hulle dan hulle besighede sluit. Die Banke kan nie die kredietwaardigheid van die entrepeneurs met tradisionele metodes bewys nie, en kan ook nie die intensies van die entrepeneur bepaal nie. Ten einde die gaping in die mark te vul vir sekuriteite en om die informasiegaping te oorkom, het mikrofinansiering 'n groter rol om te speel. Dit fokus op mense in moeilikheid, wat uitgesluit is van die tradisionele kapitaalmark. Met nuwe innoverende metodes van kredietwaardigheid opsomming, soos 'peer lending', 'staggered loans' en verminderende kredietkoers, is daar 'n sisteem geimplementeer wat sekuriteit vervang en die kredietopnemer motiveer om sy lenings terug te betaal soos geskeduleer. Die kredietopnemer kan dan begin investeer of sy besigheid vergroot. Die lewens en opvoedkundige standaard, inkomste en die armoede van die mense wat in Suid Afrika leef, veral in plakkersdorpe, is soortgelyk aan die omstandighede in ontwikkelende lande. Die huidige ekonomiese infrastruktuur en die politieke situasie aan die ander kant laat Suid Afrika weer kwalifiseer as 'n ontwikkelde land. Weens hierdie ambivalensie is dit te bevraagteken of die nuwe innoverende kredietwaardigheid evalueringsmetodes van toepassing is op ontwikkelende lande in vergeleke met Europese lande waar dit wel onder sulke omstandighede toepaslik is. Om te bepaal of dit van toepassing gemaak kan word op SA omstandighede, verduidelik die studie onder andere wat mikrofinansiering is, asook die oprigting, eienskappe, kredietwaardigheid evalueringsmetodes, en hoe dit van tradisionele banke verskil. Vervolgens word daar dan gekyk hoe drie verskillende Europese mikro banke, die sogenaamde Mikrofinansierders Instansies te werk gaan. Die 'self - sufficient' en beste praktyk word getoets met Fundusz Micro in Pole, die Franse sosialistiese Association pour le droit a I' initiative Economique en die Duitse Siebte Saute. Die resultate van 'n sensus oor Europa sal meer informasie verskaf oor hoe die meerderheid van Europese Mikrofinansierders hulle kredietwaardigheidstoetse implementeer het voor die Suid Afrikaanse sektor voorgestel word. Ten slotte word die toegepaste metodes in Europa bespreek as uitgangspunt vir die Suid-Afrikaanse mark, en daarmee word ook sosiale, kulturele faktore en ekonomiese omstandighede in ag geneem. Daar word ook aangeneem dat die metodes aangepas sal moet word om kanse aan die armste mense in Suid-Afrika te verskaf.

by Chiang Kwok Keung, Eric, Fung Shun Ching, Katherine. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1989. / Bibliography: leaf [9]

The problem with which this study is concerned is that of the income concepts used by bank loan officers in dealing with financial information, as compared to the income concepts used by the accounting profession. A series of twenty different financial situations were designed which required the loan officer to make a decision as to an income concept before he could compute the answer to the questions in income, profit, gain, and change in wealth which were asked for in each situation. The loan officers' answers to each situation were then compared with the accountants' answers, using generally accepted accounting principles. In addition, comparisons were made between the income concepts used by the different classes of loan officers and sixteen environmental factors to determine what influence, if any, these factors might have on the answer given by the bank loan officers. The two purposes of the study were to show that bank loan officers do not calculate net income by the same methods as accountants, and to determine if there are environmental factors which would influence the method the loan officer used to compute his answers.

Thesis (M.Dev.) --University of Limpopo, 2007 / Micro-lending has long been a controversial issue. Although old-age pensioners are excited about the opportunity of accessing credit from micro-lenders, some are exploited. The aim of the study was to investigate how old-age pensioners fall prey for micro-lenders, who charge them high interest on small short-term loans. The exploratory design was used for this investigation because it would provide the researcher with an in-depth understanding of old-age pensioners’ experiences when dealing with micro-lenders. The study is based on a case study of the three villages, Mphagani, Zava, and Khashane (MZK), in the rural areas of Greater Giyani Municipality, Limpopo province. Most old persons are reliant on social grants to support themselves and their extended families. Sometimes they need to supplement their income because of the responsibilities that they have in their families. Micro-finance institutions are targeting women because they are likely to be more reliable as borrowers and increased income is more likely to accrue to the family and especially children. The results of the study show that majority of old-age pensioners take loans from micro-lenders. The reasons for borrowing micro loans are categorized into four major needs for money: purchase of food, payment for health-care services, funerals, and education. These micro-lenders are not compliant with the rules and procedures of the National Credit Act.

M.Tech. (Operations Management) / This dissertation elaborates the reengineering of the personal loan application process in a South African bank operating in Africa. The research provides an understanding of the current situation and issues encountered with the current personal loan application process. It presents the framework for reengineering of the process and the methodology used in the research. The primary objective is to improve the existing process for personal loan credit applications in order to create improvements in the process. The research methodology used is quantitative analysis using statistical methods and qualitative research focusing on qualitative aspects with research reasoning being inductive allowing the researcher to draw conclusions from facts, assumptions and observations established through the data collection processes. The article offers a comprehensive understanding of the challenges faced in processing of loan applications. Businesses and institutes are built on good control systems which are needed to address the challenges faced in the processing of personal loan applications. The study contributes to customers service discourse in operations. The recommendation of the research is to reengineer the current personal loan process, taking into consideration the technology needed to improve the process, training of existing employees, implementation of a reward system and implementation of the redesigned process.

Society's strategy for achieving well being is incompatible with long term global development. The consequences of economic growth and expansion are manifested in severe ecological and social crisis. Structural changes are needed throughout society's institutions to shift the dominant concept and pursuit of progress toward a concept of progress that is based on the development of balanced social, ecological and economic well being. This involves changing roles, responsibilities and accountability of many global institutions and organizations including government, corporations and civil society. Reviews of both dominant theory's (classical theory) and current corporate-led practices' perceptions about corporate social responsibility and accountability elucidate their limitations to motivate or support structural changes, thus prompting the need to explore alternative theories and practices for structural change. Social institution theories and structural change theories are examined as alternatives, as well as alternative practices that build corporate social responsibility. The main objective of the thesis is to explore social accounting as tool for corporations and other organizations to build social responsibility and accountability in society. This objective is explored by studying and analyzing the current practices and theoretical perspectives on social accounting and auditing. Social accounting and auditing principles are applied and further examined by developing a multiple bottom line framework for VanCity Credit Union's Alternative Lending Program. Social accounting and auditing has limited applicability to large corporations since their profit motive prevents their transparency and accountability. The contribution of social accounting and auditing in society is to increase the accountability of some organizations: it allows some corporations with unique social goals to substantiate their claims for social responsibility. Social accounting and auditing is also key in assessing the performance of organizations in the social economy since their social contributions to society are undermined by mainstream bottom line assessment. The role of civil society in advancing social accounting practices is essential. It is concluded that social accounting and auditing should be developed in conjuntion with practices that resist negative outcomes of the growing global economy, as well as in co-ordination with local strategies that strive to develop an economy focused on meeting local needs.

Society's strategy for achieving well being is incompatible with long term global development. The consequences of economic growth and expansion are manifested in severe ecological and social crisis. Structural changes are needed throughout society's institutions to shift the dominant concept and pursuit of progress toward a concept of progress that is based on the development of balanced social, ecological and economic well being. This involves changing roles, responsibilities and accountability of many global institutions and organizations including government, corporations and civil society. Reviews of both dominant theory's (classical theory) and current corporate-led practices' perceptions about corporate social responsibility and accountability elucidate their limitations to motivate or support structural changes, thus prompting the need to explore alternative theories and practices for structural change. Social institution theories and structural change theories are examined as alternatives, as well as alternative practices that build corporate social responsibility. The main objective of the thesis is to explore social accounting as tool for corporations and other organizations to build social responsibility and accountability in society. This objective is explored by studying and analyzing the current practices and theoretical perspectives on social accounting and auditing. Social accounting and auditing principles are applied and further examined by developing a multiple bottom line framework for VanCity Credit Union's Alternative Lending Program. Social accounting and auditing has limited applicability to large corporations since their profit motive prevents their transparency and accountability. The contribution of social accounting and auditing in society is to increase the accountability of some organizations: it allows some corporations with unique social goals to substantiate their claims for social responsibility. Social accounting and auditing is also key in assessing the performance of organizations in the social economy since their social contributions to society are undermined by mainstream bottom line assessment. The role of civil society in advancing social accounting practices is essential. It is concluded that social accounting and auditing should be developed in conjuntion with practices that resist negative outcomes of the growing global economy, as well as in co-ordination with local strategies that strive to develop an economy focused on meeting local needs. / Applied Science, Faculty of / Community and Regional Planning (SCARP), School of / Graduate

In South Africa household debt has increased rapidly over the past few years, therefore illustrating the importance of analysing liability usage behaviour of individual members within the household. In order to comprehend the behaviour of South Africans regarding liability usages, this study provides insight into why individuals find it necessary to obtain liability products as well as to indicate whether liability products are used to address the financial needs for the purpose it was developed for. To achieve the aim of this study, it was firstly necessary to develop a theoretical framework for the process of selecting credit products when satisfying financial needs. Secondly, the characteristics and intended usage purposes of different credit products available in South Africa were discussed and a debt classification framework was developed. Finally, data obtained from the Finscope South Africa survey was analysed according to the developed frameworks following a combination of two approaches. Firstly, a qualitative approach was used to identify the different financial needs which are satisfied when using liabilities. The financial needs identified were classified according to Alderfer’s existence relatedness growth (ERG) theory and the factors that have an influence on liability usage. Secondly, a quantitative approach was followed to indicate which financial needs are fulfilled when using different credit products. The results of this study suggest that individuals do not use liabilities only for the purpose what the products were originally developed for. The findings clearly indicated that individuals mainly use liabilities to satisfy basic needs which are classified as existence needs according to Alderfer’s ERG theory. Based on the data analysis a variety of factors such as access to credit and certain demographic characteristics have an influence on liability usage behaviour of individuals. The results further show that individuals mainly use informal, unsecured, short-term loans when satisfying their financial needs which might indicate that South Africans are unable to access formal credit products. / Financial Accounting / M. Phil. (Accounting Science)

In South Africa household debt has increased rapidly over the past few years, therefore illustrating the importance of analysing liability usage behaviour of individual members within the household. In order to comprehend the behaviour of South Africans regarding liability usages, this study provides insight into why individuals find it necessary to obtain liability products as well as to indicate whether liability products are used to address the financial needs for the purpose it was developed for. To achieve the aim of this study, it was firstly necessary to develop a theoretical framework for the process of selecting credit products when satisfying financial needs. Secondly, the characteristics and intended usage purposes of different credit products available in South Africa were discussed and a debt classification framework was developed. Finally, data obtained from the Finscope South Africa survey was analysed according to the developed frameworks following a combination of two approaches. Firstly, a qualitative approach was used to identify the different financial needs which are satisfied when using liabilities. The financial needs identified were classified according to Alderfer’s existence relatedness growth (ERG) theory and the factors that have an influence on liability usage. Secondly, a quantitative approach was followed to indicate which financial needs are fulfilled when using different credit products. The results of this study suggest that individuals do not use liabilities only for the purpose what the products were originally developed for. The findings clearly indicated that individuals mainly use liabilities to satisfy basic needs which are classified as existence needs according to Alderfer’s ERG theory. Based on the data analysis a variety of factors such as access to credit and certain demographic characteristics have an influence on liability usage behaviour of individuals. The results further show that individuals mainly use informal, unsecured, short-term loans when satisfying their financial needs which might indicate that South Africans are unable to access formal credit products. / Financial Accounting / M. Phil. (Accounting Science)