Accessing bank finance in relation to human capital, gender and race among SMMEs in a developing economy

Small, Micro and Medium-sized Enterprises (SMMEs) contribute to the national economy significantly. However, many SMMEs have difficulties in accessing bank finance due to the lower level of their human capital and scarce financial resources in the context of developing economies. This study aims to investigate the key factors of human capital and associated issues with access to bank finance from gender and race perspectives. A survey design combined qualitative and quantitative research approaches were employed in this study. Data were collected through a self-administered questionnaire and a number of interviews. A group of SMME owners (n=532) were randomly selected from the Western Cape, South Africa. The findings demonstrated that the human capital and gender of SMMEs is not strongly associated with success in securing bank finance. From a race perspective, white entrepreneurs are more likely to be approved for bank finance than other race groups.