Mngoma TS, Beharry-Ramraj & Mashau P
This research work maps out financial support institutions’ contribution in developing and organising finance for Small, Medium And Micro Enterprises (SMMEs) in KwaZulu-Natal (KZN). It recognises the role played by financial support institutions and it questions the effectiveness of these institutions in delivering services to SMMEs. A literature review as directed by the research objectives and main research questions revealed the role of SMMEs in job creation, not only in developing countries, but also in developed countries. The theoretical framework of credit rationing theory underpinned this study. This research’s philosophical orientation resides in the interpretive paradigm as it satisfies both the criteria and characteristics of this research. The study used interviews to collect data and followed a qualitative research approach. The findings revealed that while there were successes in financing of SMMEs in KZN, there were also shortfalls emanating from various challenges such as financial options available, process used, policies and legislation barriers as well as performance monitoring of SMMEs. The study recommends that composite finance data for SMMEs be established and published quarterly and finance allocations should consider all categories of SMMEs.