The Performance of Small and Medium-Sized Enterprises: Financial Innovation and Barriers
Abstract
Small and medium-sized enterprises have emerged as a major source of persistent, rapid, and energizing development in the South Africa n economy. Furthermore, small, and medium-sized enterprises have played a crucialrole in the advancement of South Africa economic growth, serving as a breeding ground for entrepreneurs as well as a provider of solutions to the problems of unemployment in all consuming labors and the promotion of marketing growth. Because of the rapid evolution of the global economy, there was a chance for the healthy advancement of small and medium-sized businesses (SMEs) in South Africa in connection to the transformation and growth policy. However, because of global economic integration, the operatin g environment for small and medium-sized businesses is undergoing significant changes, as well as more severe competition. In this regard, the purpose of this paper is to present the sources of SME firm financing, conceptualize its financing challenges, and source causes, with the objectives of exploiting innovative ways to improve financing provision via crowdsourcing of financing and the necessity of providing a regulatory environment that will support it for the growth and advancement of SMEs in the future. SMEs are expected to grow and advance in the future. The approach is also critical in assisting entrepreneurs to stay highly motivated while marketing their own fields of expertise and expertise. Furthermore, it will give a person the confidence they need to become a successful entrepreneur. It is hoped that this research will contribute to the current literature in the academic subject of entrepreneurship while also serving as a springboard for further empirical investigation in this sector. Furthermore, it provides essential information and techniques that would assist entrepreneurs in understanding how crowdfunding may be used as a source of finance supply as well as the beneficial effect on the performance of Small and Medium-Sized Enterprises
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