The use of financial management practices by small, medium and micro enterprises: a perspective from South Africa
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Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
SAGE Publications
Abstract
This paper reports on an investigation of financial management practices used by small, medium-sized and micro-enterprises (SMMEs) in South Africa. It was found that more than half the SMMEs examined use external accounting staff to prepare accounting reports and more than 60% rely on external accounting staff to interpret and use accounting information. A majority of the SMME owners were found to lack interpretation skills and an awareness of how to use information from financial statements. An implication of this study therefore is that policy makers, business support organizations, banks and academic institutions need to focus on educating SMMEs more effectively in financial management, thereby mitigating the risk of cash flow problems and business failure.
Description
Keywords
Fnancial management, SMMEs, Financial planning, Financial accounting, Financial analysis, South Africa
Citation
Brijlal, P. et al. (2014). The use of financial management practices by small, medium and micro enterprises: a perspective from South Africa. Industry & Higher Education, 28(5): 341 – 350.