International Review of Management and Marketing ISSN: 2146-4405 available at http: www.econjournals.com International Review of Management and Marketing, 2019, 9(6), 44-50. International Review of Management and Marketing | Vol 9 • Issue 6 • 2019 44 Regulatory Obstacles and Small, Micro and Medium-sized Enterprises Zeleke Worku* Tshwane University of Technology Business School, 159 Nana Sita Street, Pretoria 0001, South Africa. *Email: workuz@tut.ac.za Received: 29 April 2019 Accepted: 10 September 2019 DOI: https://doi.org/10.32479/irmm.8088 ABSTRACT The study was conducted in order to assess and evaluate factors that affect the ease of borrowing money by small, micro and medium-sized enterprises (SMMEs) from microfnance agencies and commercial banks in Pretoria West. The study was conducted by drawing a stratifed random sample of size 334 SMMEs that conduct business in Pretoria West. Data was collected by using a structured, pretested and validated questionnaire of study. The degree of entrepreneurial skills of respondents was assessed by using a composite index developed by Choto et al. (2014). Data analyses were conducted by using methods such as frequency tables, cross-tab analyses and ordered logit analysis. The study found that 23.65% of SMMEs were granted loans needed for business operation, whereas the remaining 76.35% of businesses were not granted loans needed for business operation. Based on odds ratios estimated from ordered logit analysis, the ability of business operators to secure loans from money lending institutions was signifcantly infuenced by 3 factors. These factors were level of entrepreneurial skills, ability to order merchandise in bulk on credit from wholesale suppliers and distributors, and participation in social capital activities. Keywords: Pretoria West, Small, Micro and Medium-Sized Enterprise, Access to Loan, Entrepreneurial Skills, Odds Ratio JEL Classifcations: M13, M21, D21, R38 1. INTRODUCTION Pretoria West is home to a large number and variety of small, micro and medium-sized enterprises (SMMEs). The overall aim of the study was to assess and evaluate obstacles that are experienced by SMMEs in respect of securing fnance needed for routine business operation. Studies conducted by Marivate (2014), Fatoki (2014), Khale (2015) and Khale and Worku (2015) have shown that diffculty in securing loan is a key factor that undermines sustained growth and devleopment in SMMEs operating in and around the City of Tshwane. The annual report issued by the City of Tshwane (2018) for the fnancial year 2016/2017 shows that attracting SMMEs into the City of Tshwane is a key strategic priority of the City of Tshwane as a means of creating jobs and alleviating poverty among the youth. The study aims to look into the challenges experienced by SMMEs in the Tshwane region when accessing funding and support from government funding agencies. The study will also discuss the role that SMMEs play in the economy of the country, creating employment and attracting foreign investments for the economy of the country. A healthy and functional SMME sector is essential for the creation of employment opportunities in all part of the country including Tshwane. Drahos and Braithwaite (2017) have pointed out that SMMEs create employment opportunities and entrepreneurial knowledge to the national economy. Collier and Dercon (2014) have pointed out that the SMME sector makes a signifcant contribution to the national economy although it is not given adequate support and recognition by the South African Government. Kauda (2015) has pointed out that the SMME sector contributes at least half of the GDP corresponding to the construction and agricultural sectors. Edoho (2016) has shown that SMMEs have made a contribution of 55.9% to total employment opportunities generated in 2002. Small businesses are vital to the economy. Rungani and Potgieter (2018:1) have argued that the SMME sector is quite important for achieving sustained growth This Journal is licensed under a Creative Commons Attribution 4.0 International License