Faculty of Accounting and Informatics
Permanent URI for this communityhttp://ir-dev.dut.ac.za/handle/10321/1
Browse
3 results
Search Results
Item Determinants of participation of Msunduzi local municipality’s peri-urban households in the digital finance economy(2024) Nyide, Nelisiwe Fortunate; Olarewaju, Odunayo MagretDigital finance is an instrument that has the potential of improving access to finance to underprivileged groups such as peri-urban communities. Digital financial tools are capable of achieving traditional crisis management objectives with greater potency and accuracy than was historically possible. The financial services sector is in a process of accelerating change by adopting new business models based on convergent technological developments to increase customer participation in periurban areas. Therefore, the financial services sector can use digital finance to improve the availability of household financial services through diversified financial products, thus promoting the growth of household consumption. However, several studies maintain that determinants of digital finance participation of marginalised households, including peri-urban households, are generally underdetermined. Moreover, there is limited literature on the participation of South African households in the digital economy. Scholarly literature asserts that the level of participation of South Africans in digital finance is concerning. This is largely due to a lack of awareness and knowledge of digital financial services that are available to South African households. This study seeks to bridge that gap by examining the determinants of participation of peri-urban households in digital finance in the financial services sector in KwaZuluNatal, South Africa. A quantitative research approach was adopted to answer the research questions. This method was found to be suitable for this study given that the research objectives can be best measured using a structured survey that is quantitative in nature. The target population of this study consisted of peri-urban households located in the Greater Edendale area, which is the largest peri-urban area within the Msunduzi Local Municipality. The sample size for this study was 384 periurban households which were selected using purposive sampling, derived from nonprobability sampling. The questionnaires were in English and were also translated into isiZulu in order to make it easier for respondents to participate in this study. The Statistical Package for the Social Sciences (SPSS) was used to compile the descriptive statistics. The results of this study indicate that the general public in economically disadvantaged communities participates in digital financial transactions in the financial services sector on a regular basis. A Spearman correlation analysis found a substantial positive link between the usage of digital platforms by peri-urban families and their degree of participation in digital finance. This association was shown to be statistically significant (r = .649, n = 315, p < .001). However, the results of a Mann-Whitney U test showed that there was no statistically significant difference between genders with regard to involvement in digital finance (Z = -1.804, p = .071). A correlation analysis was undertaken to determine whether peri-urban households’ awareness of digital financial services influenced their adoption of digital platforms. The Spearman correlation analysis (r = .768, n = 315, p < .001) showed a strong and significant relationship between peri-urban households’ knowledge and awareness of digital financial services and their use of digital platforms. Additionally, a Spearman correlation analysis (r = -.524, n = 315, p < .001) revealed a significant negative association between peri-urban households’ adoption of digital financial platforms and their digital literacy. This is despite the fact that literature argues that in South Africa, the adoption of digital financial services is negatively affected by a lack of information and knowledge which is prevalent among marginalised communities.Item Financial literacy and SME loan repayments in South Africa during the COVID-19 era(LLC CPC Business Perspectives, 2022-11-04) Msomi, Thabiso Sthembiso; Nzama, SmangeleSmall and medium-sized enterprises (SMEs) are the primary victims of the COVID-19 outbreak because they lack adequate resources and are poorly prepared for such interruptions. For SMEs to expand, they need financial assistance such as loans and advances from financial service providers. However, they struggle to repay these loans and advances because they are small in size and do not make large turnovers, and owners lack adequate financial literacy. This study aims to investigate the relationship between financial literacy and loan repayment of SMEs. The study followed a positivist paradigm, and a quantitative approach was employed. A total of 110 self-completed Likert questionnaires were distributed, only 107 were filled correctly and analyzed using SPSS. The results from Pearson’s correlation coefficient showed a strong and significant relationship between financial literacy and SME loan repayments at r = 0.324, P < 0.0005. Regression analysis showed a significant linear relationship between financial literacy and SME loans repayments, F (1.152) = 17.806; P < 0.0005. P < 0.0005 is less than the independent variable (SME loans repayments), B = 0.324, P < 0.0005. The results imply that if SME owners are well-versed in finance, they will be capable of repaying outstanding loans and advances timely.Item The effect of late payments on suppliers' financial performance : a case study of a government department's supply chain in the Eastern Cape(2023-08-17) Madlavu, Phindiwe; Olarewaju, Odunayo MagretUsing a case study of the government department supply chain in the Eastern Cape, the proposed study examines the effects of late payments on suppliers' financial performance. It does this by giving foundation information, such as the nearness of the issue to be investigated, the goals for performing the research, the research objectives, and the questions to be replied to through the research and the research methodology. The research goes into detail, discussing the appropriate framework, the conceptual framework of SCM within the public sector in South Africa, noteworthiness and inspiration to research, and the research's confinements. It wraps up by laying out the research's system. The research used conceptual and theoretical reviews to understand the nature of the problem. Qualitative and quantitative approaches were used to determine how a late payment affects a supplier's financial performance. The data were analyzed using the latest SPSS software package. Convenience sampling was used. The population is 362 staff and the target sample consisted of 120 finance management and supply chain management department members and 70 chosen suppliers in the Eastern Cape Province. The study targeted a sample size of 190. The findings show that SCM has been fully deployed in all government agencies and that the SCM approach has been used to develop technologies, but the lack of swift payment is hindering their effectiveness. The study concluded that redesigning and integrating departmental procurement and finance training courses across departments to ensure strong SCM principles are implemented should be enforced. Moreover, there should be proper monitoring and evaluation of all tendering contracts because it affects service delivery. A well monitored contract process will ensure that the service providers complete their contracts as and when due. Also, it was concluded that most concerns in facilitating invoices are delays in submitting invoices by suppliers and submitting incomplete banking details by suppliers. Likewise, it is concluded from the findings of the study that there were contradictions in the information provided by suppliers at other times. Thus, the study recommends innovative policies that will enhance swift payments through automated invoicing and painstaking monitoring of processes for the supply chain department.