Capital structure decision making for SMMEs in the South African context

dc.contributor.advisorLew, Charleneen
dc.contributor.emailichelp@gibs.co.zaen
dc.contributor.postgraduateMogashoa, Mogori Thomasen
dc.date.accessioned2017-04-07T13:06:11Z
dc.date.available2017-04-07T13:06:11Z
dc.date.created2017-03-30en
dc.date.issued2017en
dc.descriptionMini Dissertation (MBA)--University of Pretoria, 2017.en
dc.description.abstractThe 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.en_ZA
dc.description.availabilityUnrestricteden
dc.description.degreeMBAen
dc.description.departmentGordon Institute of Business Science (GIBS)en
dc.description.librarianms2017en
dc.identifier.citationMogashoa, 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>en
dc.identifier.urihttp://hdl.handle.net/2263/59880
dc.language.isoenen
dc.publisherUniversity of Pretoriaen
dc.rights© 2017 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria.en
dc.subjectUCTDen
dc.titleCapital structure decision making for SMMEs in the South African contexten_ZA
dc.typeMini Dissertationen

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