A critical analysis of the outcomes of different funding streams impact on job creation in small businesses in Gauteng

Abstract

Purpose- It is well-known that small businesses play a pivotal role in creating jobs and this is especially true in the economy of South Africa today. Enough cannot be said concerning the high unemployment rate prevalent in the country which if the right interventions are not put in place, this negative trend will continue. This unfavourable situation inspired the researcher to begin to consider the critical factors that drive entrepreneurship globally and discovered that funding is a major factor to be considered for the sustainability of any business whether the business is large or small. This study investigates the impact, the following funding streams; personal funds, Venture capital, Government funding and Bank loans exert on job creation in small businesses in Gauteng. Methodology- A mixed method approach was implemented with two interviews with experts in the financial sector for the qualitative component and the survey with questionnaires completed by entrepreneurs of start-up enterprises for the quantitative part of the report. Results-From the research findings, the researcher should have a clearer picture of how these funding streams impact the growth of the businesses in terms of job creation.,/p>Copyright