The Use of Financial Management Practices by Small, Medium and Micro Enterprises: A Perspective from South Africa

Brijlal, Pradeep; Enow, Samuel Tabot; Isaacs, Eslyn

doi:10.5367/ihe.2014.0223

Cited by 20 publications

(23 citation statements)

References 16 publications

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“…Furthermore, Brijlal, Enow and Isaacs (2014) observed that financial management education and training of SMEs is vital for success of their businesses and called upon financial institutions to take a leading role in spearheading training and skills development. When business owners have no personal training in financial management, they typically make use of external financial management consultants, which unfortunately, small business retailers cannot afford, as cited by Brijlal et al (2014).…”

Section: 28mentioning

confidence: 99%

Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships

Malgas¹,

Zondi²

2021

JBRMR

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This paper is based on the study that sought to identify the core competitive factors that differentiate foreign national small business retailers from local South African small business retailers in the way they operate their small retailing businesses. Primary research was conducted in two of Cape Town’s (South Africa) townships, Delft and Eindhoven. The population of the study comprised two groups, namely, South African and foreign national small business retailers operating grocery retailer stores. The first group consisted of 55 South African small business retailers while the second group consisted of 75 migrant small business retailers. A random sample was targeted from each group and the quantitative research methodology was used in this study using a structured questionnaire with close-ended questions. The results showed growth of foreign national retailers and decline in the number of the local retailers in the two townships. The study showed that migrant retailers have a competitive edge over local retailers. The study also revealed that most local traders have a lower level of education compared to their migrant trader counterparts. Furthermore, the study revealed that most of local small business retailers have never had a business finance mentor in their entire trading life. The study revealed that there is a need for a targeted funding model for potential and current local small business retailers. The study proposes a three-stage business intervention model to assist South African small business retailers to become more competitive in township retailing environments.

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Section: 28mentioning

confidence: 99%

Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships

Malgas¹,

Zondi²

2021

JBRMR

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“…Of the participants that do offer credit facilities, 7.6% (n=250) do not calculate the percentage of credit as a portion of their total sale, 3.2% (n=250) indicated that between 25% and 49% of their monthly sales is on credit and 19.2% n=250indicated that between 50% and 74% of their monthly sales is on credit. Brijlal et al (2014) opine that cash management is very important to the financial well-being of a SMME. Whilst the provision of credit facilities can serve to attract customers, it should be stated that if credit sales are allowed and the business owner does not accurately record these sales, he/she will have difficulty in recouping their accounts that are receivable.…”

Section: Percentage Of Monthly Sales On Creditmentioning

confidence: 99%

“…However, the same respondents also indicated that they did not perceive an internal audit as adding value to the company's financial performance. However, Brijlal et al (2014) advocate that internal audits can be conducted in a cost effective manner by the SMME owner and should result in enhanced financial control. Section C: Operational Characteristics Indicate the generic strategy that your business has adopted The figure above illustrates that the most common generic strategy that has been adopted by SMME owners is a cost leadership strategy (46.4%).…”

Section: Arabian Journal Of Business and Management Review (Nigerian mentioning

confidence: 99%

“…Very few studies seek to uncover the specific financial characteristics of SMMEs. Brijlal et al (2014) explain that there are five crucial financial aspects of SMMEs that must be understood in order to comprehend the unique nature of these entities, namely; commencement capital, earnings and expenses, assets, debt and cash flows. Ngary et al (2014) recommend that, given the scarcity of financial resources which are available to SMMEs, owners ought to apply the following financial management techniques in order to become efficient: monitoring of cash position, accounting and measuring results, forecasting, planning and budgeting.…”

Section: Findings From the Literature Reviewmentioning

confidence: 99%

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Investigating the Characteristics and Challenges of SMMEs in the Ethekwini Metropolitan Municipality

Karodia¹,

Cowden²,

Soni³

2015

AJBMR

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Globally, SMMEs have been lauded for their significant contributions to GDP, employment creation and poverty reduction. Notwithstanding the plethora of financial and non-financial support initiatives, the SMME sector in South Africa endures a high business failure rate. Detractors of SMME development initiatives contend that policymakers often formulate their strategies on inaccurate sector statistics. As such, policymakers in South Africa are being urged to focus on the collection and collation of statistics relating to the nature of SMMEs. It seems logical that this attempt must first begin at a local level-as accurate data at a local level will facilitate accurate records at the provincial and national levels. The major aim of this study is to conduct a potential of the SMME systematic inquiry in order to describe the key characteristics and challenges of SMMEs that operate in the eThekwini Metropolitan Municipality

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“…Besides, survey of the existing literature (e.g. Brijlal et al, 2014;Tayles, Pike & Sofian, 2007; indicates shortage of empirical studies that integrate costing, budgeting, and performance measurement practices with moderating variable of the external business environment, although few studies have indicated how costing, budgeting, performance measurement practices, and external business environment can stimulate profit growth and drive forward performance. Also, there is dearth of research regarding the use of external business environment as moderator in the context of SMEs (Drury & Tayles,1995;Alkizza& Akbar, 2006;CGA, 2010;Shehu& Mahmood, 2014).In Sudan, the application of management accounting practices (MAPs) in SMEs is limited, and there are few studies relating MAPs usage to the performance of SMEs.…”

Section: Introductionmentioning

confidence: 99%

Conceptual Model of Predictors of SMEs' Performance in the Context of Sudan

Abdelrahman

Abdullah

Abas

2017

JBSEE

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Purpose: SMEs' performance in Sudan is in downturn and calls for research-based solution. To address this, this conceptual study proposes a model entailing management accounting practices (costing, budgeting, and performance measures practices) as predictors of SMEs' performance. Also, research findings on the relationship between management accounting practices and performance are inconsistent. Given this, this study proposes a model entailing management accounting practices as determinants of SMEs' performance with moderating role of external business environment. Design/methodology/approach: This work is theorized based on extensive literature survey through which a conceptual model is developed and discussed. Inconsistent relationship between management accounting practices and performance is valuated and established via published research. Also, moderating role of external business environment is discussed and validated based on contingency theory. Findings: This paper proposes a conceptual model to serve as an answer to how Sudanese SMEs' performance can be improved through management accounting practices. Research limitations/implications: The proposed model in this work is based on survey of published research, but it can be empirically solidified further through collection and analysis of relevant data. Practical implications: The paper can help SMEs' owners/ managers and policy makers to understand how properly-adopted management accounting practices can improve SMEs' performance. Originality/value: The proposed conceptual framework is an exceptional and all-inclusive model that will expectantly improve the relevant body of literature and serve as useful guide for stakeholders on how the performances of SMEs can be boosted to enable them catch up with the SMEs' performance level of the developed countries in order to boost the economy of Sudan as a nation.

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The Use of Financial Management Practices by Small, Medium and Micro Enterprises: A Perspective from South Africa

Cited by 20 publications

References 16 publications

Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships

Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships

Investigating the Characteristics and Challenges of SMMEs in the Ethekwini Metropolitan Municipality

Conceptual Model of Predictors of SMEs' Performance in the Context of Sudan

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