SMEs, Success, and Capital Startups: Evidence from the Service Sector in South Africa

Financing has been identified as a major stumbling block to the effective launch and long-term success of SMEs, particularly in emerging economies. However, little is known about impact capital startups on SMEs’ performance South Africa. Thus, aim this article compare differences business for three different levels Capital determine performance. The analysis was premised two-tail hypothesis test that average weights groups are different. Cronbach Alpha test–re-test reliability approach survey instrument indicated values 0.70 0.875, respectively. A one-way between-groups variance conducted startup. There statistically significant difference at p < 0.05 level scores (F (2, 477) = 12.967 0.0000). Post hoc comparisons using Tukey HSD mean Group 1 (M 19.93, SD 6.343) were significantly from 2 20.94, 2.309) 3 21.73, 2.880). Despite reaching statistical significance, actual between quite small. ANOVA indicates finance (startup capital) remains impediment service-providing SMEs. It recommended SMEs who want raise startup must create solid plan or build prototype sell idea. This will assist them discussions with venture capitalists, angel investors, banks, other financial institutions.