Theses and dissertations (Accounting and Informatics)
Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/4
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Item The impact of financial statement quality and firm characteristics on access to finance by small and medium-sized enterprises in eThekwini(2024) Mayendisa, Qiniso Prince; Stainbank, Lesley June; Ramsarghey, AnchalThe South African government has established several public sector institutions that cater to small and medium-sized entities’ (SMEs) needs through the Department of Trade, Industries and Competition. These institutions, known as Business Development Service Providers, assist SMEs in running their businesses more effectively and can enhance access to finance as an alternative form of collateral in circumstances where security for a loan is required. However, most SMEs apply for finance from financial institutions. As access to finance has been identified as a major obstacle limiting the growth and survival of SMEs, the objective of this research was to investigate the impact of financial statement quality and firm characteristics on access to finance by SMEs in eThekwini using the “Applied and Received” approach. The main research objective was divided into three sub-objectives; these were to determine the forms of finance being used by SMEs, to determine the accounting frameworks being used by SMEs, and to investigate whether financial statement quality and firm characteristics affect their access to finance. To achieve these objectives, a questionnaire was administered to owners of SMEs in eThekwini. The results revealed that the main forms of finance used by the SMEs were overdraft facilities, bank loans, factoring, leasing, and hire purchase, and that the average rate of extent of access to finance is 19.10%. The findings also revealed that 4.8% of the respondents were using IFRS, 72.9% were using IFRS for SMEs, and 22.3% were using South African Statements of Generally Accepted Accounting Practice. Lastly, the findings revealed that firm age, firm size, collateral, and financial statement quality have a significant effect on access to finance by SMEs. Therefore, possession of such firm characteristics and financial statement quality are important predictors of SMEs’ successful access to finance. The Government needs to help SMEs by providing them with educational programs that will assist them in compiling and understanding their financial statements to keep them improving and surviving. Furthermore, an SME’s growth and survival also depends on its access to finance.Item A framework for supporting technological innovation by manufacturing small and medium enterprises in KZN(2024) Bingwa, Luyanda Loraine; Ngibe, MusawenkosiUnemployment is an ongoing phenomenon in every country. It is rapidly increasing, which leads to a decline in the economy and other societal problems. This is particularly evident in developing countries such as South Africa, where the unemployment rate is 32.9%. The South African government has identified small and medium-sized enterprises (SMEs) as a key aspect of its strategy to reduce unemployment rates and to realise the vision outlined in the National Development Plan 2030. SMEs are major job creators and contribute significantly to the gross domestic product (GDP) of South Africa. They account for the majority of employment opportunities in the country, especially in sectors such as agriculture, manufacturing, and services. SMEs also support economic growth through their capacity for innovation and swift market adaptation. They are ideal for generating innovative ideas due to their pioneering role in adopting new technologies and are particularly adept at identifying gaps in the market which could be addressed through innovative solutions. There are ongoing debates about the uptake of technology by SMEs in African countries, including South Africa. Some scholars argue that manufacturing SMEs in South Africa have been hesitant to adopt modern technologies, which has hindered their growth and their ability to reach full potential. However, there are counterarguments that provide a more nuanced perspective on the challenges and opportunities for technology adoption among manufacturing SMEs in KwaZulu-Natal (KZN), South Africa. One significant issue is SME owners' inability to fully grasp the complexity of information and communications technology (ICT), which has a negative impact on their decision to adopt ICT. Furthermore, government regulations and compliance requirements have been a crucial factor affecting the viability and growth of manufacturing SMEs. Without a comprehensive understanding of ICT, SMEs find it challenging to make informed decisions about their investments in this field. Critically evaluating the use of Fourth Industrial Revolution (4IR) technologies as a way of improving success rates amongst manufacturing SMEs in KZN will enable the development of a framework which can provide practical guidance for the adoption of 4IR technologies by manufacturing SMEs in KZN. The objectives of this study are supported by a pragmatic methodology, which considerably expands the area of the investigation. 384 manufacturing SMEs in KZN are the target population for this study, and approaches for identification and selection of the sample size include convenience and purposive sampling. The study utilises both primary and secondary research. Interviews and questionnaires are utilised as data collection instruments. The review of literature and relevant theories such as the technology acceptance model (TAM), the technology-organisation-environment (TOE) framework, dynamic capability theory (DCT), the theory of planned behaviour (TPB), task-technology fit, process virtualisation, and the unified theory of acceptance and use of technology (UTAUT) assist in identifying and addressing potential barriers that may arise during the technology adoption process, such as cost, skills, resistance to change, and compatibility with existing systems. The primary results of this study demonstrate that digital competencies and thorough ICT knowledge are lacking in manufacturing SMEs in KZN. In addition, ICT adoption and usage in manufacturing SMEs in KZN is significantly low, which diminishes the potential of ICT as a long-term strategy. This is evident in the investigation of several factors relating to the acceptance and use of ICT by manufacturing SMEs as a longterm tool for business success. The findings of this study also suggest that manufacturing SMEs do not have the capacity to identify and implement appropriate and adequate ICTs as a sustainable strategy to improve their business viability. Based on the key findings, the study recommends that manufacturing SMEs prioritise digital literacy, which will enhance their comprehension of the potential benefits of ICT adoption. Consultation with IT professionals is recommended as a valuable means for SME owners to obtain reliable guidance and to discuss the complexities of ICT. The government should consider creating platforms to enable SMEs to express objections to regulations, contribute to amendments, and provide insight into the impact of legislation on their business.Item The impact of the iLembe District Municipality business incubation programme on the tax compliance of small and medium-sized enterprises(2023) Magwaza, Bahle; Stainbank, Lesley June; Jali, L FThe purpose of the study was to investigate the impact of the iLembe District Municipality business incubation programme on the tax compliance of small and medium-sized entities (SMEs). The study used a positivist philosophy and an exploratory design. The target population was 1 005. A questionnaire was administered electronically to a sample of 278 SMEs. The findings highlight the varied range of support services that business incubators in South Africa provide to SMEs which are critical for their survival, growth, and longterm success. Factors affecting SMEs’ tax compliance were penalties, tax complexity, record keeping, and compliance costs for both incubated and non-incubated SMEs. Record keeping and documentation was perceived as the factor that most affects compliance amongst the businesses under incubation (m = 3.99), while tax penalties was perceived at the factor most affecting compliance for SMEs not in the incubator (m = 4.01). The findings also indicate that SMEs under incubation tend to hold more favourable attitudes towards the benefits of tax compliance compared to SMEs not under incubation. This finding highlights the significance of business incubators in increasing SMEs' tax compliance, resulting in a more tax compliant SME sector in the iLembe District Municipality The study recommends that business incubators ought to collaborate with the South African Revenue Service and other government agencies to develop policies that will enhance SMEs’ tax compliance in the iLembe Municipality District. It also recommends that business incubators hire service providers, consultants, or incubator staff who are knowledgeable and skilled in SME development, and particularly in tax compliance. Finally, the study highlights the critical role of business incubators in improving SMEs' tax compliance and overall success, emphasising the need for targeted support, education, and collaboration. Incubators play a critical role in the iLembe District Municipality's entrepreneurial landscape by providing comprehensive services and targeted efforts that not only assist tax compliance but also stimulate growth, innovation, and economic development.