Olarewaju, Odunayo MagretNgiba, Brian ThulaneMajola, Khethiwe Prudence2024-06-212024-06-212024https://hdl.handle.net/10321/5309A Research Thesis submitted in Fulfilment of the Degree of Master of Accounting: Financial Accounting, Durban University of Technology, Durban, South Africa, 2024.Since small-medium enterprises are considered the backbone of every country’s economy, it is important that they have a source of finance for their growth and development. As a result, the objectives of this study were to examine the factors that impact access to debt financing; determine the effect of market imperfections on the decision of small-medium enterprises (SMEs) to apply for debt financing; evaluate the impact of debt financing as a source of finance on the growth and development of small-medium enterprises (SMEs); and lastly, examine the influence of the economic environment on small- medium enterprises (SMEs)’ growth in South Africa: Empirical evidence from Durban. A qualitative research method and a purposive sampling technique were utilized to select the participants for this study. The researcher used the formula proposed by Yamane to calculate the sample size at a 90% confidence level, where P = 10. The sample size was calculated to be 88. For the purposes of this study, a target sample size of 200 was used. The study collected primary data through a survey questionnaire from respondents who are owners and managers in the agricultural, retail, manufacturing and construction sectors in Durban, South Africa. Three hundred (300) questionnaires were administered, and the data was analyzed using the Statistical Package for the Social Sciences (SPSS). A regression analysis and Pearson’s correlation analysis were conducted to address and achieve the objectives of the study. Some of the most notable findings were small-medium enterprises (SMEs) are shutting down even though they had been funded because of weak financial management skills in utilizing funds effectively and efficiently, using funds on unrealistic market criteria, and ending up over-indebted and unable to pay back the borrowed amount with interest. Small-medium enterprises (SMEs) are finding it difficult to obtain debt financing for their growth and development due to their limited knowledge on how to go about applying for debt financing and what requirements they must meet to obtain funding.125 penDebt financingGrowth and developmentSmall and medium-sized enterprises (SMEs)Small business--GrowthSmall business--ManagementSmall business--FinanceDebt financing (Corporations)Thesishttps://doi.org/10.51415/10321/5309