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South African Journal of Business Management
On-line version ISSN 2078-5976
Print version ISSN 2078-5585
Abstract
OTTO, Werner H.. SMEs perception related to their trade credit management effectiveness. SAJBM [online]. 2023, vol.54, n.1, pp.1-13. ISSN 2078-5976. http://dx.doi.org/10.4102/sajbm.v54i1.3831.
PURPOSE: To determine small and medium-sized enterprises' (SMEs) perception related to their trade credit management effectiveness DESIGN/METHODOLOGY/APPROACH: Quantitative research design with purposive sampling as the sampling method, administrated to 10 450 SMEs within South Africa FINDINGS/RESULTS: The results indicate SMEs perceive their trade credit management as effective PRACTICAL IMPLICATIONS: The article reveals how SMEs perceive their trade credit management by identifying their effectiveness in managing trade credit ORIGINALITY/VALUE: By raising awareness pertaining to SMEs' perceptions around their trade credit management effectiveness, SMEs can become more observant of their own trade credit management effectiveness and overall finances. Thereby, SMEs' awareness could be improved to become financially viable and, in so doing, empower SMEs to foster economic development within South Africa. Given the results revealing SMEs' perception as effective in managing trade credit, the study adds value by providing insight as to what financial problems, apart from trade credit ineffectiveness, could contribute to their business failure. There is a need therefore to investigate why SMEs continue to fail at such high rates because of financial problems in order to determine the root causes and types of financial problems contributing to SME business failure
Keywords : trade credit; effectiveness; managing; small and medium-sized enterprises; perception; asymmetric information; financial problems; debtor; creditor.