Citation: Ogujiuba, K.K.; Eggink, M.; Olamide, E. Impact of Elements of Finance and Business Support on the SME Business Ecosystem in South Africa: An Econometric Analysis. Sustainability 2023, 15, 8461. https://doi.org/10.3390/su15118461 Academic Editor: Changwoo Ahn Received: 31 January 2023 Revised: 20 April 2023 Accepted: 21 April 2023 Published: 23 May 2023 Copyright: © 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). sustainability Article Impact of Elements of Finance and Business Support on the SME Business Ecosystem in South Africa: An Econometric Analysis Kanayo K. Ogujiuba * , Maria Eggink and Ebenezer Olamide School of Development Studies, Centre for Entrepreneurship Rapid Incubator [CFERI], University of Mpumalanga, Nelspruit 1200, South Africa * Correspondence: Kanayo.Ogujiuba@ump.ac.za Abstract: Studies conducted in South Africa have revealed that despite SMEs’ contributions to economic growth, financing is still a problem, and business supports such as management and business development training and the creation of business plans are additional obstacles to their expansion and survival. This article specifically investigates the combined effects of financing and business support on the business environment of South African SMEs. We calculated a necessary sample size of 1937 using a sample size calculator, a margin of error of 2%, a confidence level of 95%, and a response rate of 20%. As a result, 2200 questionnaires were distributed, the target population was split into 3 strata, and then samples were chosen for the survey from each stratum. The SPSS version 25.0 was employed to analyze the data in three parts, namely, descriptive, correlation, and the outcome of the regression (coefficients/model summary/ANOVA). The level of significance was determined at 5%. The test–re-test reliability method (trustworthiness assessment of the questionnaire) and Cronbach Alpha test (internal constancy) resulted in values of 0.70 and 0.875, respectively, which were regarded as satisfactory. The SME business ecosystem in South Africa was positively and significantly impacted by each of these financial and business support components. The findings also give policymakers vital information about the need for more research into how money and business assistance interact throughout the business ecosystem. It is advised that the South African government intensify its current policies and programs on SMEs’ access to financing, particularly in the areas of grants, equity financing, and loan financing. Additionally, it is necessary to build an adequate information system that ensures unrestricted information flow to rural areas. Keywords: SME; ecosystem; finance; business 1. Introduction Despite the challenges confronting their take-off, SMEs have been identified as playing a significant role in the creation of employment, the reduction in poverty, the equitable distribution of income, the improvement of lifestyles, and the sustainability of growth and development across sectors [1–3]. Business operations and stability are affected by a variety of factors, including finance, the environment, the government, legal issues, competitors, clients, and trade associations, as well as business support and stakeholders [4–9]. The importance of financing and business support for the growth and survival of SMEs cannot be overstated according to [1,10], who placed a higher value on these two indices of the business ecosystem. In a contemporary business environment, the components of finance as an ecosystem perception index include loans, equity finance, debt finance, and grants [2,11,12]. All of these have been proven in the literature as having an impact on the success or otherwise of the whole ecosystem [1,10,13,14]. Different opinions pervade the influence of finance as an ecosystem perception index. On the other hand, business support to the ecosystem of SMEs comes in the form of advice (financial, legal, and business), contacts, managerial Sustainability 2023, 15, 8461. https://doi.org/10.3390/su15118461 https://www.mdpi.com/journal/sustainability