The Impact of access to credit on the development of SMMEs in rural areas : Sobonakhona Makhanya Tribal Authority Area, South Africa

Abstract

This study investigates the nature of credit available to SMMEs in rural areas, to determine the impact of access to credit on the development of these SMMEs. This study is quantitative and exploratory in nature; it explores the impact of access to credit on the development of SMMEs in Sobonakhona Makhanya Tribal Authority rural area. Research findings revealed that access to credit is a major concern for businesses in this area. SMMEs who obtained credit experienced positive changes in their businesses. Therefore, it is recommended that SMMEs be encouraged to apply for credit, as it is important for their development.