Listing of Small and Medium Enterprises on the Alternative Exchange in the Gauteng Province in South Africa - A Model of Factors that Lead to a Successful Listing

The limited number of listings observed across Alternative Stock Exchanges stems from inherent challenges on both the supply and demand sides of public equity. The Johannesburg Alternative Exchange (AltX) mirrors this trend, hosting less than 1% of the country's SMEs. Grounded in the Theory of Planned Behaviour, this study delved into the inquiry: in the context of the existing listing challenges, what leads one SME to list and another not to, when seeking growth capital? To address this question, in-depth interviews were conducted with a sample encompassing 20 firms, comprising both listed and unlisted entities. The data were analysed using Crisp Set Qualitative Comparative Analysis (csQCA). Our study's outcomes reveal distinctive disparities between listed and unlisted firms. The listed firms perceived the cost of listing as manageable, didn't anticipate a loss of control, possessed the necessary skills for listing, perceived an added value, and considered AltX accessibility favourable. We concluded with a model of factors that lead to listing.