This thesis investigates the impact of an EU-directive (directive 2011/61/EU) regarding the administration of alternative investments by fund managers (AIFMs) on the business models of AIFMs which became effective on June 22, 2013. This new fund regulation is expected to affect the business models of traditional AIFMs that were not previously subject to regulation but now have to comply with these rules. The potential effect of the Alternative Investment Fund Manager Directive (AIFMD) has been subject to contentious debate in the past. However, the outcomes of the AIFMD have not previously been considered post implementation and so will be investigated for the first time by this research thesis. This thesis explores the changes already driven by the AIFMD to understand its impact on traditional business models. These changes are currently initiated by fund managers in order to ensure a sustainable business. This thesis also investigates how the marketplace in which fund managers operate will change as a result of the AIFMD and how this change will impact traditional business models. Since the AIFMD only recently became effective, no quantitative data is available. Therefore, this research is based on exploratory research starting with an online survey sent to 200 fund managers managing different types of small, medium and large Alternative Investment Funds. The online survey asks general questions about the fund manager’s business, such as size, jurisdictions, investment types, etc. It also reveals the extent to which business models have been adapted to the requirements, in particular the operating conditions of the AIFMD and which requirements still need to be employed by the respective fund manager. Based on the results of the online survey, a small number of fund managers were chosen for personal interviews representing different types and size of managed funds as well as a variety of country locations. The samples were chosen in that way to allow generalization of the research findings for a broad range of different fund managers with different business models. The personal interviews enable confirmation of the findings achieved by the online survey as well as providing a deeper understanding of how fund managers perceive the impact of the AIFMD on their business model. The form of the interviews is flexible with open and spontaneous questions appropriate to the specific interview situation. This enables a more complex and sophisticated view of the change of traditional business models. Since the AIFMD was only recently realized and currently several AIFMD documents, such as specific guidance, is still outstanding, additional research is needed. Additional research could consider more quantitative data that is not yet available.

M.B.A. / The Industrial Development Corporation (IDC) is a self-financing, state owned, national development finance institution that provides risk financing to entrepreneurs engaged in a multitude of industries. Its vision is to be the primary driving force of commercially sustainable industrial development in South Africa. International research has shown that the catalyst for promoting and sustaining industrial development in many countries is the contribution made by Small and Medium Enterprises (SMEs). In South Africa, extensive research has shown that the growth of these enterprises is currently stifled by the lack of access to finance, mainly from commercial banks and private equity financiers, who have imposed onerous lending criteria on this market sector. The literature also reveals that alternative state and private sector financial institutions have been unable to fill this finance vacuum adequately. The IDC, as a national development finance institution, currently operates in the SME market by making loan finance available to these companies, provided that they meet its' extensive funding criteria. This dissertation examines the role the IDC is currently playing in the financing of SMEs by undertaking an assessment of the IDC's loan criteria. Recommendations based on the assessment are made with a view to improving the number of SMEs helped with financial assistance by the IDC.

Small, Medium and Micro Enterprises (SMMEs) make a significant contribution to the South African Economy. Regardless of size, these businesses have the ability to create employment, make a generous contribution to tax collections, uplift communities and serve as a beacon of hope for those trapped in the cycle of poverty and unemployment. However, SMMEs lack access to much-needed financial resources that are critical for their growth. Development Finance Institutions (DFIs) aim to bridge the gap between the SMME’s financial needs and the development of the respective SMME businesses, by providing funding to entrepreneurs with potentially viable businesses and ideas. Debt funding to these SMMEs are based on sound commercial lending principles that take various non-quantitative variables into account. The sustainability of SMMEs is a primary concern to all participants in the economy, as it is known that SMME failure rates are high Therefore, the primary objective of this study was to investigate the impact that the credit risk management practices of DFIs have on the sustainability of SMMEs, by examining a case study of a typical DFI. An electronic questionnaire survey was considered as an appropriate measurement method for this study. The targeted population of the study included SMMEs in the Eastern Cape that are Trust for Urban Housing (TUHF) clients and 23 SMMEs were identified as part of the study sampling frame. A total number of 14 questionnaires were returned out of the 23 targeted SMMEs - giving a response rate of 61%. The quantitative data was processed using the STATISTICA program, leading to appropriate descriptive statistical analyses. In order to better understand the impact of credit risk management practices on the sustainability of SMMEs, a hypothesis was formulated and linear regression analysis was used to establish the statistical significance of certain credit risk principles and sustainability characteristics. The results of the empirical study revealed that credit risk management practises do impact on the sustainability of SMMEs. Further, by testing the hypothesis, it was also revealed that certain sustainability variables are regarded as more important than others.

Abstract The role of relationship banking has been the subject of intensive discussion in recent years. A large body of the literature has examined the benefits and costs related to lender-borrower relationships in small business finance. Despite the numerous studies conducted in both market-based and bank-based economies, the specific sources of the determinants of the value of relationship lending are ambiguous. However, many research results imply that a close and long-term relationship with the bank is desirable for small businesses. In this study, we investigate the sources of value in Finnish lender-borrower relationships in small business finance. We conduct three separate empirical studies that cover the following aspects of relationship banking: determinants of the value of the bank-firm relationship, collateral requirements and borrower risk, and the comparison of the different characteristics of relationship banking in bank financing and non-bank financing. We use unique and detailed credit file data from two sources, bank data from one of the largest banks in Finland and non-bank data from a large financial institution owned by the Finnish state. Both datasets cover the period 1995 to 2001. Our main findings are the following. First, duration and scope are important characteristics in determining the sources of value in the bank-firm relationship. We find that a longer relationship tends to lower the cost of the credit, and that wider scope tends to decrease the collateral requirements significantly. Second, a long-lasting bank-firm relationship is beneficial, especially to high-risk firms. As the relationship matures, loan premiums for high-risk firms decrease at a higher rate than for low-risk firms. Third, low-risk borrowers put up more collateral than high-risk borrowers, which implies the existence of a signaling effect. According to the signaling theory, low-risk firms are willing to pledge more collateral than high-risk firms. Fourth, when comparing bank and non-bank credit files, we find that bank-firm characteristics are not fully transferable to the relationship between a non-bank and a firm.

Small and medium enterprises (SMEs) play a vital role in the growth of the economy and have become a major concern for government and policy makers in developed, as well as in developing countries. Given the stated importance of SMEs in generating economic growth in Kuwait, it is essential that SMEs have access to sources of finance. However, access to finance is one of the major constraints to SME development, and is frequently mentioned in the entrepreneurship literature. This study aims to evaluate how Islamic financial institutions can support SMEs in Kuwait. The study adopts a qualitative approach that was articulated through a case study design. The case here is the phenomenon of SME financing as enacted by two organisational forms. This research uses two comparative cases; the cases are formed around the nature of the financing organisations in Kuwait and the interaction of SME owners with these organisations. Twenty face-to-face semi-structured interviews were conducted with members of three different groups: SME owner-managers, managers of financial institutions, and Sharia board members to explore their opinions and perceptions with regard to the role of Islamic finance for SMEs. The main findings indicate that, in Kuwait, access to finance remains a principal challenge for SMEs. Furthermore, collateral is one of the main problems they face when obtaining finance from Islamic banks. The findings suggested that without government support, the banks would not be able to finance SMEs, and therefore, specialised SME finance institutions were more compatible than other Islamic banks with small and medium enterprises. In addition, the study showed that Islamic finance instruments were more suitable than commercial instruments. It also showed that integrating zakat, charity, waqf, and qard hassan would be helpful to the SME sector in Kuwait. The findings add to the understanding of the role of Islamic finance and contribute to knowledge about SME development, using Islamic finance methods, in Kuwait. This could encourage the government to adopt related policies in order to improve access to finance for SMEs.

The Small Businesses Loans Act was designed to increase the flow of funds for capital purposes from the banking system to small firms in the Canadian economy. This study examines the need for this legislation. The major sources of funds for small business are discussed and the question of the adequacy of these financing facilities is considered. This part of the study concludes that the 'MacMillan Gap' in Canada has been narrowed in the post-war period, but not yet closed. The study then examines the effectiveness of the Small Businesses Loans Act in bridging the remaining gap. The legislation, and the record of borrowing under the Act are reviewed. Particular attention is directed to the effects of monetary policy on the volume of lending under this Act. The study also includes an examination of the experience of a sample of borrowers, their characteristics, the purposes for which loans were obtained and banking practices with respect to this lending program. The conclusions of the study suggest that the Small Businesses Loans Act has fulfilled a useful role in improving the financial facilities available to small business despite a number of deficiencies in the legislation. It is also suggested however that the need for this legislation has largely been removed by recent amendments to the Bank Act. / Business, Sauder School of / Graduate

A rather unique situation presents itself in the control off materials in the petroleum industry because of great areas to cover, diversified activities within those areas, and a multiplicity of operating units being served from the depot of supplies. It is the purpose of this paper to look into the particular problems of keeping an adequate system of stores records in the oil business. The control of materials and stores distributed from the field operating unit is of necessity achieved through the use or various forms or records written as evidence of transactions among the production units being served. The prime motive of using the forms is to facilitate the movement of goods to their destination within the unit served and to provide an accurate record of the materials received, stored, and distributed.

Submitted in compliance with the requirements for the Masters Degree in Technology: Business Administration, Department of Entrepreneurial Studies and Management, Durban University of Technology, 2009. / The purpose of this study is to identify the influence of customer-supplier relationships through facilitation of credit on the development of Micro enterprises in the Sobonakhona Makhanya Tribal Area of KZN. This study originates from the fact that there are many SMME‟s in South Africa, absorbing about 15 million people (DTI, 1995:7). Even though this sector is providing most of the employment in the country, they still find it difficult to arrange funds to start or expand their businesses. Lending institutions do not want to provide finance for them, and if they do, they do it with reluctance and reservations. As a result, SMME‟s are not able to grow and develop into big businesses. This is a quantitative and exploratory research study which was used to explore, for the first time in Sobonakhona Makhanya Tribal area, the relationship between customer-supplier relationships and accessibility of credit facilities. The study made use of questionnaires to obtain the respondents‟ perceptions on the research questions developed. A questionnaire that consisted of 35 questions was distributed to 50 SMME owners in Adams Mission, Madundube and Umbumbulu (AMU) villages. Cronbach‟s reliability analysis was not applied as it was not appropriate for use with this questionnaire. The research showed that a relationship between customers and suppliers assists SMME‟s to obtain access to credit facilities. Added to this, SMME owners, who had access to credit facilities, experienced positive changes in their businesses. This serves to prove that access to credit is essential for the development of SMME‟s. As a result, recommendations to train and educate SMME owners on how to manage their businesses, how to apply for credit and the requirements needed for applications have been set out.

Thesis (MBA)--University of Stellenbosch, 1994. / ENGLISH ABSTRACT: This research attempts to give an alternative conceptual model according to which potential small business owners should construct market and financial viability studies for proposed new small enterprises. A study was made of the theoretical requirements prescribed for market and financial viability. This theoretical requirements were compared to the extent in which data is presented in practice to financial institutions to meet their own viability requirements. Primary data was collected from the subsidiary companies of ABSA Bank and small business owners in the Cape Peninsula. The final analysis suggests that very few small business owners conduct thorough market or financial viability studies during start up or during the different growth phases of their businesses. They rely mostly on banks and other financial institutions for guidance. A suggestion is made that financial institutions conduct their own research to determine whether their requirements for market and financial viability are still viewed as realistic by small business owners. / AFRIKAANSE OPSOMMING: Die navorsing poog om 'n alternatiewe konsepsuele model weer te gee waarvolgens potensiele kleinsake-eienaars mark- en finansiele lewensvatbaarheidstudies vir voorgenome nuwe klein ondememings behoort uit te voer. 'n Studie is van die voorgeskrewe teoretiese vereistes vir mark- en finansiele lewensvatbaarheid gedoen. Hierdie teoretiese vereistes is vergelyk met die mate waartoe sulke data wel deur kleinsakelui aan finansiele instansies aangebied word om aan hulle eie lewensvatbaarheidvereistes te voldoen. Primere data is versamel by die filiale van ABSA Bank en kleinsake-eienaars in die Kaapse Skiereiland. Die gevolgtrekking word gemaak dat baie min kleinsake-eienaars wel deeglike mark- en finansiele lewensvatbaarheidstudies doen gedurende die aanvang van hul besighede of gedurende die onderskeie groeifases van hul ondernemings. Hulle steun meesal op banke en ander finansiele instellings om leiding te verskaf. Daar word voorgestel dat finansiele instellings ook navorsing doen of die vereistes wat hulle stel vir lewensvatbaarheid, nog steeds as realisties deur kleinsakelui beskou word.

M. Tech. Business Administration / Financial distress and bankruptcy is one of the most significant threats to the going concern of many businesses, irrespective of their size and nature of operations. Research in corporate financial distress and corporate failure prediction dates back to the mid-sixties, and the bulk of the studies have been conducted within the context of highly developed market economies. Very little research has been conducted within the context of emerging markets, and using small and medium-sized firms. This therefore encouraged the author of this research report to conduct a study, applying a model specifically developed for emerging economies to predict financial distress of small and medium-sized South African listed firms. The main purpose of this study is to examine whether a model designed for financial distress prediction and credit scoring in emerging markets is reliable, and can be accurately applied in South Africa.