An Investigation Of Small And Medium Enterprises Perceptions Towards Services Offered By Commercial Banks In South Africa

This paper reports on findings of a unique study which collected information from the demand side of finance to understand the perceptions of small scale businesses from rural and semi-urban areas towards commercial banks. The study is an empirical investigation of perceptions and attitudes of Small and Medium Enterprises (SMEs) towards commercial banks and consequently the importance SMEs regard of commercial banks as an important source of funding. The study reveals that SMEs from rural areas have a very poor understanding of the services commercial banks offer and understanding of the bank loan procedures.