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Theses and dissertations (Accounting and Informatics)

Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/4

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Subject: search.filters.subject.Small and medium-sized enterprises (SMEs)

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    The impact of debt-financing costs on the growth and development of Small-Medium Enterprises in South Africa : empirical evidence from Durban
    (2024) Majola, Khethiwe Prudence; Olarewaju, Odunayo Magret; Ngiba, Brian Thulane
    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.
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    Adoption of mobile cloud computing by small and medium-sized enterprises (SMEs) in rural areas
    (2023-10) Cele, Noxolo Pretty; Govender, Mogiveny; Rajkoomar, Mogiveny
    This study was conducted in the rural areas of KwaZulu-Natal (KZN) province of the Republic of South Africa. These rural areas includes uMbumbulu, Hlokozi, Eluphepheni, and KwaMakhutha. The main aim was to examine various factors that affect the adoption of Mobile Cloud Computing (MCC) by SMEs located in these areas. This study was motivated by benefits of MCC in various sectors around the world. This includes the provision of cloud-based services to users through the Internet and mobile devices. The current study is of the view that providing MCC to small and medium sized enterprises (SMEs) in rural areas can help them leverage cloud computing resources to improve their performance and delivery of services to customers. A quantitative research strategy was employed to obtain greater knowledge and understanding of the factors that affect the implementation of MCC by SMEs in the indicated rural areas, aiming to produce objective data that can be clearly communicated through statistics and numbers. The online survey was administered to owners, managers, employees and customers of these SMEs. The collected data was later analysed through Excel and the Statistical Package for the Social Sciences (SPSS) version 25. The results of this study reveal that, according to the customers’ point of view, SMEs in rural areas will be able to adopt MCC if there are adequate technological devices. The results suggest that relative advantage (RA), perceived security, perceived ease of use (PEU), and attitude are some of the factors that need to be considered for SMEs in rural areas to successfully adopt MCC. The findings also signal a strong correlation between perceived need, technological devices, compatibility, RA, complexity, trialability, and observability, when measured against MCC. In summary, the results indicate the importance of doing proper research before adopting cloud-based services in order to identify the need for MCC adoption. Significantly few respondents showed resistance or doubt regarding SMEs‘ adoption of MCC.
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    Administration practices affecting environmental compliance by small and medium-sized enterprises in the manufacturing sector
    (2022-12-07) Maphumulo, Jabhisile Roxetta; Dongwe, Khethiwe; Nyide, Celani John
    The significant role of Small and Medium-sized Enterprises (SMEs) and their contribution towards the growth and development of the countries’ economies are acknowledged globally. SMEs play a crucial role in transforming socioeconomic conditions and are driving the economy by availing employment opportunities and fuelling the demand for goods and services. However, regulations and legislations are the important constraints to SME growth in developing countries. One of the common causes that lead to the failure of some SMEs is that owners have limited awareness of the environmental legislations and lack managerial skills that will help with carrying out administrative practices required to comply with these legislations. The result of lack of awareness and poor entrepreneurship is shown by the high number of SMEs closing down annually in South Africa due to noncompliance. Therefore, the purpose of this study was to examine the administration practices adopted by SMEs in the manufacturing sector within Msunduzi Municipal boundary, and to establish how the environmental compliance can be enhanced by these entities. This study adopted a quantitative research approach using a 5 point Likert scale closed-ended questionnaire as a data collection instrument. The questionnaire was distributed to managers and administrative personnel of the participating SME in the manufacturing sector. Probability sampling method was adopted to narrow down the sample size to 215 respondents. The data collected from respondents was analysed using the Statistical Package for Social Sciences (SPSS) version 25.0 and Microsoft Excel. Results from data analysed show that there was a consensus that complying with environmental regulations is compulsory, therefore compliance is vital. Furthermore, the results indicate that among the administration practices for compliance identified, obtaining a licence to operate was paramount for the SMEs to operate legitimately. Respondents did not confirm if the compliance assessment reports were kept as a record for environmental compliance. The results indicate that employees were uncertain as to which environmental regulations they are complying with by completing the tasks assigned to them. Off concern, they were not in agreement that environmental compliance is prioritised within the respective SMEs.
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    Factors influencing tax compliance of small and medium-sized enterprises in the Durban area
    (2022-04-10) Dlamini, Prisca Nondumiso; Jali, Lulu Fortunate; Mutanda, Mary
    It is globally recognised that small and medium-sized enterprises (SMEs) play a significant role in improving a country’s economic growth and creating jobs. It is, therefore, in the public interest and in the interests of government to support SMEs. The South African government has recognised and focused on the improvement of SMEs as one of its strategic objectives. Regardless of the significance of SMEs for the country and region, there are numerous difficulties that SMEs face. Therefore, this study was conducted to evaluate factors that influence tax compliance of SMEs in the Durban area, located in KwaZulu-Natal, South Africa. The gravest and tedious difficulty is guaranteeing tax compliance. Taxation is an important source of funding for the government's construction programmes. For many tax authorities, tax compliance is a major concern, and persuading SMEs to comply with tax provisions, particularly as tax laws are often not precise, is a challenging task. South African Revenue Services (SARS) estimates a South African tax gap of R 300 billion per tax year, and also about 40% of local enterprises are not registered for tax purposes in South Africa. This study employed a quantitative research approach to obtain data from 146 SMEs operating in the Durban area. A total of 230 questionnaires were distributed to SMEs located in Clermont, Morningside, Umgeni, Durban Central and Phoenix, with 157 questionnaires returned. However, only 146 questionnaires were usable. The research outcome revealed that participants’ level of education impacts tax compliance, and there is a positive relationship between the tax compliance costs and tax compliance. Attention was drawn to the impact on non-compliance due to complex tax filing and high tax rates. Furthermore, the study indicated that the continuous granting of tax amnesties demotivates compliant taxpayers. The research recommended that the South African government consider reviewing the tax rates and compliance costs and reduce noncompliance by SMEs by improving tax awareness campaigns.
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    A critical assessment of management accounting practices in small and medium-sized clothing enterprises in Newcastle, KwaZulu-Natal
    (2019-11) Vilakazi, Sanele Phumlani; Stainbank, Lesley June; Nyide, Celani John
    The aim of this study was to make a critical assessment of the extent of the management accounting practices (MAPs) in small and medium-sized enterprises (SMEs) in Newcastle, KwaZulu-Natal. The objectives of the study were to determine the extent to which MAPs are employed by Newcastle clothing/textile SMEs, to identify the roles played by MAPs in Newcastle clothing/textile SMEs management, to determine the factors that affect the extent of use of MAPs amongst Newcastle clothing/textile SMEs and to consider the role of MAPs in the performance of the SME. The motivation for the study was driven by the lack of research on the extent of use of MAPs by clothing/textile SMEs in South Africa. The forms of MAPs investigated in this study were the costing systems, the budgeting systems, the performance management tools, the decision support systems, and strategic management accounting. These MAPs are thought to be necessary for the survival and success of SMEs in the modern enterprise environment. This is a quantitative descriptive survey of 51 clothing/textile manufacturing SMEs in Newcastle, KwaZulu-Natal using a self-administered questionnaire. The results of this study indicate that budgeting systems were the most used MAPs by Newcastle clothing/textile SMEs and that the strategic management accounting (SMA) and performance measurements tools (PMTs) were the least used of the MAPs surveyed. Newcastle clothing/textile SMEs use traditional MAPs; however, they are endeavouring to integrate the modern or newly-developed MAPs such as the use of the decision support systems into their enterprises’ administration. The results indicated that the most valued role of MAPs was for planning future strategies, tactics and operations. On the other hand, certain roles of MAPs were considered not to be beneficial to Newcastle clothing/textile SMEs. Factors that affected the use the MAPs were the high cost to implement MAPs, the complexity of newly-developed or modern MAPs, that the benefits of the MAPs were too difficult to observe, and the lack of information on affordable accounting services. In respect to the performance of the Newcastle SMEs, the results indicated that the MAPs assessed had a moderate influence on the performance of SMEs. The study recommends that SMEs are apprised of the significance of MAPs. SMEs should liaise with academics, government, and professionals in the commerce field, amongst other initiatives, to implement and monitor their skills development for the success and survival of SMEs in the clothing/textile industry.