Abstract

SMEs contribute positively to economic growth, employment and poverty alleviation in South Africa. However,
the failure rate of SMEs is very high in South Africa. One of the factors limiting the survival and growth of
SMEs in South Africa is non-availability of debt financing. This study investigates the impact of firm and
entrepreneurial characteristics on access to debt finance by SMEs in South Africa. Data was collected through
self-administered questionnaire in a survey. The statistical analyses included descriptive statistics, Pearson
correlation and logistic regression. The results indicate that firm and entrepreneurial characteristics impact on
access to debt finance by SMEs. The study recommends that SMEs owners/managers should be investment
ready by providing collateral, attend seminars and training programs to improve on their managerial competence.

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