Submitted in partial fulfilment of the requirements for the degree of Masters in Business Administration (MBA), Business Studies Unit, University of Technology in the Faculty of Commerce, 2007 / Entrepreneurship, business knowledge and skills within micro and small businesses play an important part in the economies of countries across the globe by being the drivers of economic growth, as well as, creating employment. The role of micro and small businesses is matching that of big business and in some countries contributes up to ninety per cent of revenue. The difficulties from supply and demand perspectives are receiving increasing attention from government and academic institutions and researchers, and the purpose of this study is to establish to what degree the presence of entrepreneurship is present in the region concerned, as well as, investigating the extent of knowledge and skills within the sample of micro and small business owners. The study uses descriptive statistics drawn from a questionnaire survey, to achieve its purpose. One hundred and seventy micro and small businesses were drawn using a stratified random sampling method. Businesses surveyed were grouped into the following categories: services, manufacturing, hardware, clothing and food. Entrepreneurial traits were found present in the micro and small business owners, however certain behavioural aspects argued against this presence. In terms of knowledge and skills, the extent was found to be limited in terms of both academic qualifications, and business acumen. Growth rates of the businesses in the survey seem to be low and the presence of real entrepreneurship would need further investigation.

Submitted by Bruno Rodrigues Camargo (brunorodriguescamargo@gmail.com) on 2018-07-18T14:56:06Z No. of bitstreams: 1 Thesis_BRUNO_CAMARGO_final.pdf: 1776056 bytes, checksum: 4b6f4750984666be7fb977f4384bb228 (MD5) / Approved for entry into archive by ÁUREA CORRÊA DA FONSECA CORRÊA DA FONSECA (aurea.fonseca@fgv.br) on 2018-07-24T21:02:27Z (GMT) No. of bitstreams: 1 Thesis_BRUNO_CAMARGO_final.pdf: 1776056 bytes, checksum: 4b6f4750984666be7fb977f4384bb228 (MD5) / Made available in DSpace on 2018-07-27T18:44:59Z (GMT). No. of bitstreams: 1 Thesis_BRUNO_CAMARGO_final.pdf: 1776056 bytes, checksum: 4b6f4750984666be7fb977f4384bb228 (MD5) Previous issue date: 2018-06-28 / In this thesis I empirically investigate the role of non-price related search frictions in the access to finance by firms. The focus is on the relationship between these factors and how their variation in time can affect access to finance. The study uses a rich dataset of small, medium and large firms from 109 countries, mostly of them emerging economies, and of country related search friction indicators. Results show that banking outreach indicators and informational infrastructure are strongly associated with access to finance. The percentage of internet users and its variation are the most relevant of the informational variables, especially for small and medium enterprises. For large firms, the changes in fixed phone subscriptions and in the proportion of branches by population are the most relevant frictions. Results shed light on the already identifiable role of internet on financial inclusion of SMEs, and on the difference search frictions make in the access to finance depending on firm’s size. / Esta dissertação investiga empiricamente o papel das fricções de busca não relacionadas a preços no acesso a financiamento por empresas. O foco está na relação entre elas, bem como no efeito das mudanças nesses indicadores nos níveis de acesso a financiamento. O estudo usa um rico conjunto de dados de pequenas, médias e grandes empresas de 109 países, a maioria países em desenvolvimento, e de indicadores de fricção de busca por país. Os resultados mostram que os indicadores de alcance bancário e de infraestrutura informacional estão fortemente associados ao acesso a financiamento. A porcentagem de usuários da internet e a sua variação são as mais relevantes dentre as variáveis informacionais, especialmente para pequenas e médias empresas. Para as grandes empresas, as variações no número de assinaturas de telefonia fixa e na proporção de agências bancárias pela população são mais relevantes. Os resultados esclarecem o papel já identificável da internet na inclusão financeira de PMEs e a diferença que as fricções de busca fazem no acesso a financiamento dependendo do tamanho da empresa.

Microfinance has strongly developed over the past decades on the promise of reaching a double bottom line of financial viability and social impact. Recently, some actors have started to advocate that microfinance, to be truly responsible, should include a third environmental objective as well. However, little scientific knowledge exists today on environmental management within microfinance institutions (MFIs). The objective of this PhD thesis is to shed light on how MFIs manage their environmental bottom line. More specifically, we identify the strategies adopted by MFIs to improve their environmental bottom line, we propose a new framework to assess the environmental performance of MFIs, and we analyze their motives for going green, the characteristics of MFIs involved in environmental management, and the challenges that they face when implementing environmental programs./La microfinance s’est fortement développée ces dernières années sur la base d’une double promesse :celle d’atteindre une viabilité financière tout en ayant un impact social. Récemment, certains acteurs ont commencé à déclarer que la microfinance, afin d’être véritablement responsable, devrait inclure un troisième objectif, environnemental. Aujourd’hui, les connaissances scientifiques liées à la gestion environnementale au sein des institutions de microfinance (IMF) sont toutefois limitées. Cette thèse s’intéresse donc à la manière dont les IMF gèrent leur impact environnemental. Plus particulièrement, elle identifie les stratégies adoptées par les IMF pour améliorer leur performance environnementale, propose un outil de mesure de la performance environnementale des IMF, et analyse leurs motivations pour devenir vertes, les caractéristiques des IMF engagées dans la gestion environnementale, et les défis auxquels elles sont confrontées lors de la mise en œuvre de programmes environnementaux. / Doctorat en Sciences économiques et de gestion / info:eu-repo/semantics/nonPublished

The following study is about business angels financing small business start-ups. It explores the aspect of starting up an entrepreneurial venture in which the entrepreneur seeks to secure start-up finance from lenders, raising the various issues that are known to characterise this engagement between the entrepreneur and the lender. Using the phenomenological paradigm, the study seeks to determine the awareness of small scale financing by entrepreneurs in South Africa, to determine the most commonly used source of start-up business funding in South Africa, to assess the extent to which business angel financing could be used to finance businesses in South Africa and to determine the factors impacting the use of business angel financing in South Africa. From these objectives, the study will also seek to determine the extent to which business angel networks could facilitate the financing of business start-ups. Small businesses invariably come up in different policy spheres as the main avenues to social and economic construction across national and regional lines. The importance of a successful business start up to a growing economy should not be underestimated. In line with this is the particular factor of gaining access to start up capital, which continues to emerge as a leading contributor to the success or failure of business start ups. Studies continue to verify that the most common challenge faced by most emerging entrepreneurs is start-up capital, either in the lack of this capital, the unfavourable conditions surrounding its availability, the lack of assets to serve as collateral for its use or the ambiguous flow of crucial information between lenders and providers of finance in the funding relationship (Abor and Biekpe, 2006: 69;Hernandez-Trillo, Pagan and Paxton, 2005: 435, ISPESE, 2005: 7, CDE, 2004: 5; Musengi 2003: 11). Roger Sorheim (2005: 179) refers to business angels as private individuals who offer risk capital to unlisted companies that are struggling to obtain start up capital to finance their business ideas. Business angels are further defined as high net-worth bearers of substantial private capital who predominantly invest in the early stage of high risk high potential return business ventures with a positive further growth potential. Business angel finance is typically a ‘once-off’ early stage form of small firm financing compared to the more frequent later stage venture capitalist funding. Studies show that business angels represent an underutilised wealth creation mechanism when it comes to small firm start-ups as most business angels contribute expertise in addition to finance to the start-ups they get involved in. This brings valuable business insight to the commercialisation of a good business idea. The business angel network exposes a range of potentially viable business prospects to willing investors by facilitating the flow of information about entrepreneurs and their businesses, thereby eliminating ambiguity, information asymmetry and transaction costs (Aernoudt and Erikson, 2002: 178; Van Osnabrugge and Robinson, 2000:374; Macht, 2006:1; Ehlrich, De Noble, Moore and Weaver, 1994:70; Sorheim, 2005:179). To achieve a holistic approach to a phenomenon which appears to be relatively new in South African business circles, the study will follow a qualitative approach in which two categories of populations will be used, one of small business operators and the other of business angels in South Africa. In the study, 20 small business operators and five business angels in Grahamstown will be approached using the convenience and snowballing sampling methods respectively. Face-to-face semi-structured interviews will be used as a data collection method and content analysis will be used as a data analysis tool (Collis and Hussey, 2003:156, Driver, Wood, Segal and Herrington, 2001:32, National Small Business Act ). There has been very limited research on business angels in the South African context, therefore the study would significantly contribute in entrepreneurship, government and small business development circles as it brings about attention to what the researcher predicts is an underutilised business start-up financing option.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Small and medium enterprises have an important role to play in the South African economy. The success of SME’s will lead to economic growth, that will play a major role in reducing unemployment in South Africa. It will also be the main driver for black economic empowerment. As elsewhere in the world one of the main problems that SME’s face is the need for finance and access to finance. Banks play a major role in providing finance to SME’s by providing different forms of finance to SME’s. The finance that the shareholders / directors can access in their personal capacity plays a critical role in the provision of finance to SME’s. Banks will require security when advancing credit facilities and the security that is offered by the shareholders / directors play an important role in the decision of banks to advance credit. The risk that the banks carry when granting credit facilities to SME’s is reduced when personal suretyships of the directors / shareholders are required. The personal assets of the shareholders / directors are used as security to obtain credit facilities for the SME’s. If the SME’s should fail, the banks will liquidate the personal assets of the directors / shareholders to settle the credit facilities that were granted to the SME’s. Customers are not aware of the dangers when signing surety. Banks have fiduciary duties towards their customers to inform them of any risks and what possible solutions might exist that will minimize the adverse financial effect of such risk consequences. If the surety should die, the bank will have the option to liquidate the assets of the sureties to settle the debts of the entities for which the surety has signed personal surety. Life cover can be affected on the lives of the sureties that will provide the necessary liquidity to settle the debts of the entities without the bank having to liquidate the personal assets of the sureties. Consumer protection has become widespread where the phrase caveat emptor has been replaced by caveat vendor – let the seller be aware. In addition to this the South African Government has also enacted legislation that banks have to adhere to that will lead to customers making informed decisions. The National Credit and the Financial Advisory and Intermediary Services Acts have been introduced to afford the customer more protection. The banking industry has adopted the Code of Banking Practice which places responsibility on the banks to fully disclose all risks to their customers. It is especially the surety, the person that provides security for the debts of others that now enjoys increased protection. The National Credit Act affords a surety the same protection as the principal debtor and the Code of Banking Practice also contains very specific references with regards to sureties. Banks have become a business and the traditional notion that holds that business ethics and absolute adherence to legislation, industry codes and its own code of ethics will have an adverse effect on business, no longer holds. Many reasons have been given by ABSA Bank as to why the financial planners of ABSA Brokers should not be part and parcel of each transaction where credit facilities are extended to their customers. The reality however is that the Financial Planners must be made part of the process when credit facilities are extended. The Financial Planners must provide a financial needs analysis to the customer that will enable the customer to make an informed decision as to whether to implement life cover or not. By making the financial planners part of the process ABSA Business Bank will ensure adherence to legislation, industry codes and most importantly, it will fulfill the fiduciary duty that it has towards its customers. / AFRIKAANSE OPSOMMING: Klein en medium ondernemings (KMO’s) speel ‘n belangrike rol in die Suid-Afrikaanse ekonomie. Die sukses van klein en medium ondernemings sal lei tot ekonomiese groei, wat sal bydra tot ‘n afname in werkloosheid in Suid Afrika. Dit sal ook die hoof drywer wees van swart ekonomiese bemagtiging. Soos elders in die wêreld is een van die hoofprobleme wat deur KMO’s in die gesig gestaar word die behoefte aan finansiering en die toegang tot finansiering. Banke speel ‘n belangrike rol in die verskaffing van finansiering deurdat finansiering in verskeie vorme aan KMO’s beskikbaar gestel word. Die finansiering wat aandeelhouers / direkteure in hulle persoonlike hoedanigheid kan bekom speel ‘n kritieke rol in die verskaffing van finansiering aan KMO’s. Banke vereis sekuriteit wanneer kredietfasiliteite beskikbaar gestel word en die sekuriteit wat deur die aandeelhouers / direkteure aangebied word speel ‘n belangrike rol in die banke se besluit om krediet te verskaf. Die risiko’s wat banke loop wanneer kredietfasiliteite aan KMO’s beskikbaar gestel word, word verminder wanneer persoonlike borgskappe van aandeelhouers / direkteure vereis word. Die persoonlike bates van die aandeelhouers / direkteure word gebruik as sekuriteit om kredietfasiliteite vir KMO’s te bekom. Indien die KMO’s sou misluk, sal die banke die persoonlike bates van direkteure / aandeelhouers te gelde maak om die kredietfasiliteite wat aan die KMO’s beskikbaar gestel was af te los. Kliënte is nie bewus van die gevare wat hulle loop wanneer hulle borgskappe verleen nie. Banke het fidusiêre pligte teenoor hulle kliënte om hulle in te lig aangaande enige risiko’s en watter moontlike oplossings daar bestaan wat enige nadelige finansiële gevolge sal beperk. Indien die borggewer tot sterwe sou kom, het die bank die opsie om die bates van die borggewer te gelde te maak om die skulde te delg van die entiteite waarvoor die borggewers persoonlike sekuriteite verskaf het. Lewensdekking kan aangegaan word op die lewe van die borggewers wat die nodige likiditeit sal verskaf om die skulde van die entiteite te delg sonder dat die persoonlike bates van die borggewers te gelde gemaak hoef te word. Verbruikersbeskerming geniet hedendaags voorrang waar die frase 'caveat emptor' - laat die koper op sy hoede wees - vervang is deur 'caveat vendor' – laat die verkoper bedag wees. Hiermee saam het die Suid-Afrikaanse regering ook wetgewing in plek gestel waaraan banke moet voldoen wat daartoe sal lei dat kliënte ingeligte besluite kan neem. Die Nasionale Kredietwet en die Finansiële Adviseurs- en Tussengangerswet is in werking gestel om meer beskerming aan die verbruiker te verleen. Die bank industrie het ook die Kode van Bankpraktyk aanvaar wat groter verantwoordelikhede op banke plaas om alle risiko’s ten volle aan hulle kliënte te openbaar. Dit is veral die borggewer, die persoon wat sekuriteit verskaf vir die skulde van ander persone / entiteite wat groter beskerming geniet. Die Nasionale Kredietwet bied aan die borggewer dieselfde beskerming as die hoofskuldenaar en die Kode van Bankpraktyk bevat ook spesifieke verwysing na die regte van borggewers. Bankwese het ‘n besigheid geraak en die tradisionele siening dat sake etiek en streng onderworpenheid aan wetgewing, industrie kodes en banke se eie etiese kodes ‘n negatiewe effek op besigheid sal hê, dra nie meer water nie. Verskeie redes is al deur ABSA Bank aangevoer oor hoekom die finansiële beplanners van ABSA Makelaars nie deel moet wees van elke transaksie waar krediet aan kliënte verleen word nie. Die realiteit is egter dat die finansiële beplanners deel van die proses gemaak moet word. Die finansiële beplanners moet ‘n finansiële behoefte ontleding aan die kliënt beskikbaar stel wat die kliënt in staat sal stel om ‘n ingeligte besluit te neem om lewensdekking te implementeer al dan nie. Deur die finansiële beplanners deel van die proses te maak verseker ABSA Besigheidsbank nakoming aan wetgewing en industrie kodes. Wat egter meer belangrik is, is dat die bank dan ook sy fidusiêre plig wat die bank teenoor sy kliënte het, sal nakom.

Abstract Background: Small businesses are vital for the welfare of a country. Yet, they have trou-ble obtaining external financing and these difficulties are gathered under the umbrella concept the “Financial Gap”. The most common source of fund-ing for small businesses is bank loan, why the availability of bank financing is a critical factor for their success. Today, 31% of all Swedish companies argue that they have finance problems and for half of these, the problem is to obtain a bank loan. Purpose: The purpose of the study is to describe and explain the Financial Gap as a relational concept. That is to say that the study will contribute to the understanding of the Financial Gap by focusing on the perspectives of both small businesses and banks interactively. Method: The study views the concept of the Financial Gap from a practical stand-point, assuming that it expresses its existence in the interaction between small businesses and banks. To pursue this view, the study takes on an Eth-nomethodological research approach. This approach is necessary in order to come close to and understand small businesses‟ and banks‟ everyday prac-tises. In-depth interviews are used for obtaining this deeper understanding of both parties. In addition, a questionnaire was sent out to small businesses in order to verify the information gathered in the interviews. Conclusion: On the basis of the study, the authors have developed an Interactive Model which describes their understanding of the Financial Gap. The members of small businesses and banks deal with information differently, which in turn is a result of how they approach ambiguity. When ambiguity is present, small firms settle with making decisions under uncertainty, whereas banks prefer to calculate on probabilities, why their decisions are considered being made under risk. The differences mentioned become visible in their deci-sion-making process, where small businesses act pursuant to a practical rea-soning whereas banks employ an analytical reasoning. Consequently, it leads to a clash when these two shall interact and function in a transaction as partners. The study concludes that the Financial Gap can be explained by small firms and banks speaking different languages when presenting the same reality.

<p><strong>Abstract </strong></p><p><strong>Background: </strong>Small businesses are vital for the welfare of a country. Yet, they have trou-ble obtaining external financing and these difficulties are gathered under the umbrella concept the “Financial Gap”. The most common source of fund-ing for small businesses is bank loan, why the availability of bank financing is a critical factor for their success. Today, 31% of all Swedish companies argue that they have finance problems and for half of these, the problem is to obtain a bank loan.</p><p><strong>Purpose: </strong><em>The purpose of the study is to describe and explain the Financial Gap as a relational concept. That is to say that the study will contribute to the understanding of the Financial Gap by focusing on the perspectives of both small businesses and banks interactively. </em></p><p><strong>Method: </strong>The study views the concept of the Financial Gap from a practical stand-point, assuming that it expresses its existence in the interaction between small businesses and banks. To pursue this view, the study takes on an Eth-nomethodological research approach. This approach is necessary in order to come close to and understand small businesses‟ and banks‟ everyday prac-tises. In-depth interviews are used for obtaining this deeper understanding of both parties. In addition, a questionnaire was sent out to small businesses in order to verify the information gathered in the interviews.</p><p><strong>Conclusion: </strong>On the basis of the study, the authors have developed an <em>Interactive Model </em>which describes their understanding of the Financial Gap. The members of small businesses and banks deal with information differently, which in turn is a result of how they approach ambiguity. When ambiguity is present, small firms settle with making decisions under uncertainty, whereas banks prefer to calculate on probabilities, why their decisions are considered being made under risk. The differences mentioned become visible in their deci-sion-making process, where small businesses act pursuant to a practical rea-soning whereas banks employ an analytical reasoning. Consequently, it leads to a clash when these two shall interact and function in a transaction as partners. The study concludes that the Financial Gap can be explained by small firms and banks speaking different languages when presenting the same reality.</p>

Cette thèse explore les stratégies financières et organisationnelles adoptées par les petites et moyennes entreprises (PME) qui leur permettent de concilier croissance et indépendance. Les quatre chapitres apportent des contributions théoriques et empiriques à cette question. Le premier chapitre teste le lien entre contrôle familial et croissance sur un large échantillon de PME françaises. Le lien négatif entre contrôle familial et croissance s’explique par le fait que les entreprises familiales adoptent un comportement de croissance particulier consistant à créer un réservoir de fonds propres. Le second chapitre développe un modèle théorique afin d’expliquer ce comportement. Le cadre théorique fournit une explication au comportement patient des PME familiales et démontre que la constitution de réserves de trésorerie est une politique rationnelle et optimale en présence d’opportunités de croissance illiquides. Le troisième chapitre interroge les avantages et les coûts de la constitution d’un groupe de PME en utilisant une base de données sur les liens entre entreprises françaises. La constitution d’un groupe de PME est une stratégie organisationnelle qui favorise la croissance des entreprises affiliées au groupe et la croissance globale du groupe, en raison de l’efficience du marché interne des groupes de PME. Le dernier chapitre traite de la question des motivations de l’entrepreneur à créer un groupe de PME. Les observations corroborent l’hypothèse d’immunisation. La structuration sous forme de groupe de PME a pour objectif de limiter l’exposition du patrimoine de l’entrepreneur au risque de son activité, et non d’exproprier les actionnaires minoritaires.<p><p>This thesis explores the financial and organizational strategies adopted by small businesses in order to conciliate growth and independence. The four chapters present theoretical and empirical contributions to this issue. The first chapter tests the relationship between family control and growth on a large sample of French small businesses. The negative relationship between family control and growth relates to the fact that family controlled small businesses have a higher propensity to adopt patient growth behavior. The second chapter presents a theoretical framework that explains why small businesses hold large amount of cash. The model demonstrates why small businesses, with illiquid growth opportunities, need constituting capital in advance to maintain their growth capacity. The third chapter investigates whether small business groups (SBG) are an organizational strategy that promotes growth. The results show that grouping small businesses promotes small business development, because SBGs improve capital allocation. The last chapter explores entrepreneur motivation to grow the business by building a SBG. According to the results SBGs are built in order to immunize entrepreneur wealth exposure to the business risk, not to increase entrepreneur private benefits of control. / Doctorat en Sciences économiques et de gestion / info:eu-repo/semantics/nonPublished

This thesis aims to better understand the process of the funding of young innovative<p>ventures, and how a deeper understanding of this process can help public policy to better<p>stimulate entrepreneurial firms—especially in high-technology industries. I interpret<p>entrepreneurial finance broadly to mean financing issues facing young innovative<p>ventures. It includes three essays which deal with a set of economic, institutional, and<p>public policy issues to examine entrepreneurial finance. / Doctorat en Sciences économiques et de gestion / info:eu-repo/semantics/nonPublished