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Faculty of Accounting and Informatics

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    Nexus between small and medium-sized enterprise budgeting skills and loan repayment in South Africa
    (LLC CPC Business Perspectives, 2024-05-07) Msomi, Thabiso Sthembiso
    This study’s purpose is to assess the influence of small and medium-sized enterprises’ (SMEs) budgeting skills on loan repayment in South Africa. The quantitative research approach was selected as the appropriate methodology for this study, while the purposive sampling approach was selected as the appropriate way to select participants for this study. The primary data for this study came from respondents who were business owners of SMEs in the retail, hardware, construction, and manufacturing industries. SPSS was used to analyze the acquired data. A total of 380 research questionnaires were distributed, and there were 375 that were returned for analysis (which gives a response rate of 99%). Both a regression analysis and a correlation analysis using Pearson’s method were carried out. Pearson’s correlation coefficient revealed a positive and significant relationship between SMEs’ budgeting skills and loan repayment at the level of r =.250, p < 0.0005. These results were supported by the finding that there is a positive and significant association between these two factors. According to the findings of the study, it is recommended that financial providers educate their SMEs on how to prepare various types of budgets, how to follow up and compare their financial objectives to their performance, and that financial institutions and government organizations should assist SMEs with budgeting skills to decrease SME loan defaults.
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    The relationship between SME financial sustainability and owners’ financial well-being in South Africa
    (Center for Strategic Studies in Business and Finance SSBFNET, 2024-07) Msomi, Thabiso Sthembiso; Aliamutu, Kansilembo Freddy
    This study examines the relationship between financial sustainability and the financial well-being of SME owners in Durban, South Africa. Utilising a quantitative research design, data were gathered through close-ended surveys from a diverse cross-section of SME owners, employing a cross-sectional approach.The study adopted a positivist philosophical framework, emphasising quantitative data analysis to derive conclusions. A total of 250 responses were collected, yielding a robust response rate of 82%. The analysis involved descriptive statistics and correlation analysis, with the correlation matrix revealing a positive, statistically significant correlation (r = 0.504, p < 0.05) between financial sustainability and financial well-being. The findings indicate that higher levels of financial sustainability are associated with greater financial well-being among SME owners, though the strength of this relationship is moderate. The regression analysis further supports this positive association, suggesting that interventions aimed at enhancing financial sustainability may significantly improve the financial well-being of SME owners. These results align with the theoretical framework of the Easterlin Paradox, which highlights the relative importance of financial stability in enhancing overall well-being. Based on these findings, several recommendations are proposed, including fostering financial literacy, enhancing access to financial resources, and promoting entrepreneurial collaboration.
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    Financial literacy status among non-government organisations’ financial managers in KwaZulu- Natal, South Africa
    (Asian Economic and Social Society, 2024-03-15) Mvunabandi, Jean Damascene; Nomlala, Bomi Cyril
    This study investigated the financial literacy status among financial non-government organisations (NGOs) managers in KwaZulu-Natal. The study adopted a quantitative research strategy; a Likert scale questionnaire was used to collect data from 53 managers purposively and conveniently sampled in KwaZulu-Natal. Robustness analysis was performed using SPSS version 28 for descriptive and inferential statistics. The findings of the study revealed that all independent variables correlate between 1.000 and -.364.  This study provided practical and theoretical contributions in the field by deepening an understanding of the key variables identified by this research study, which has been justified by the most relevant literature that drives the financial literacy of NGOs and financial managers. The study further offered insight into constructs for measures of financial literacy in NGOs. This study added to the body of knowledge on the financial literacy of NGOs financial managers in South Africa. The study urgently recommends that NGOs, academia, policymakers, and other key players in the financial literacy field consider the urgent need for financial literacy training or short courses within this sector. These findings urgently call for the attention of the policymakers. This study offered a future research plan on the subject matter in the areas of the true extent of the practicality of financial literacy among financial non-government organisations’ managers that were not addressed in this article.
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    Unearthing financial wisdom : exploring the factors shaping financial literacy among agribusiness entrepreneurs in Zimbabwe
    (2024-03) Gumbo, Lilian; Marimuthu, Ferina; Vengesai, Edson
    Purpose: Agribusiness serves as the cornerstone of the Zimbabwean economy, with a significant portion of the population relying on agricultural-related pursuits for sustenance. However, the concerning financial practices exhibited by agribusiness entrepreneurs, coupled with lackluster sectoral performance, present pressing issues. These issues manifest as pronounced instances of financial exclusion, loan defaults, and diminished productivity within the sector. The primary focus of this study was to assess the financial literacy of agribusiness entrepreneurs and elucidate the principal determinants of this literacy, employing the theoretical framework of the lifecycle hypothesis. Design/methodology/approach: The research design employed was explanatory in nature, involving the collection and subsequent quantitative analysis of data via questionnaires. The study encompassed a population of 172,221 agribusiness farmers hailing from five distinct districts in Zimbabwe, namely Mutare, Mt Darwin, Mutoko, Gweru, and Masvingo. To ensure a representative sample, a sample size of 623 was calculated utilizing the Slovin formula. Findings: The research outcomes unveiled an overall deficiency in financial literacy within the agribusiness sector, particularly pronounced among women, individuals with low incomes, those possessing limited educational attainment, and those supporting multiple dependents below the age of 18. As a crucial recommendation, the study advocates for the implementation of mandatory financial literacy courses at both the primary and secondary education levels. Such an intervention could contribute significantly to addressing the identified shortcomings in financial literacy among agribusiness entrepreneurs and subsequently foster more prudent financial behaviors within the sector.
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    Financial literacy operationalization model for agribusiness entrepreneurs in Zimbabwe
    (International Institute for Science, Technology and Education, 2023-01) Gumbo, Lilian; Marimuthu, Ferina; Vengesai Edson
    Agribusiness is the cornerstone of the Zimbabwean economy as most people survive on agricultural related activities and it is regarded as the first step to fighting poverty among the rural population. However, the sector has not been performing well in terms of productivity due to various factors, which include poor management of borrowed funds, higher loan defaults and financial exclusion. The study sought to assess the level of financial knowledge, financial behaviours, and financial attitudes of agribusiness entrepreneurs and to develop an operationalisation model for improving financial literacy. Pragmatism research philosophy guided this research to use mixed method approaches and sequential mixed method research design. Quantitative data was first collected using a research questionnaire, followed by interviews that were conducted to build upon quantitative results. Multistage cluster sampling and convenience sampling was used to select research participants. Research findings established that agribusiness entrepreneurs: (1) have low financial knowledge, (2) exhibit poor financial behaviours (3) have good financial attitudes except for diverting a portion of business loans for personal use. The general level of financial literacy was very low among agribusiness entrepreneurs. Hence the study recommended a financial literacy operationalisation model for agribusiness entrepreneurs for consideration by policy makers.
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    A review of accounting, management and sustainability imperatives of sustainable transformative performance
    (International Institute for Science, Technology and Education, 2023-01) Maama, Haruna
    In the dynamic contemporary business environment, sustainability has evolved as a central pillar of organisational performance, as financial performance is no longer considered a firm's sole objective. However, the impact of sustainability practice on accounting, management and strategies has been told in a disparate manner. As a result, this systematic literature review analyses and synthesises the complex intersection of accounting, management practices, and the compelling mandates of sustainability. This literature review covers numerous facets of organisational practices and performance as it moves through several research themes involving the nexus of accounting, management, and sustainability. The study reviews topics like financial valuation and reporting, looking at the complex connection between financial performance and sustainability disclosures. The study also discusses management and accounting procedures, looking closely at how organisations are changing their plans to comply with sustainability requirements. This covers issues including fraud prevention techniques and cost management focusing on sustainability. The review also looks into the complex effects of sustainability practices on economic development, growth, and investment. It discusses how foreign direct investments affect the sustainability of host nations' economies. In addition, the study explores the views of educators on the efficacy of efforts focused on sustainability within the context of education and academia. The study also examines career paths in accounting academia to shed light on how educational institutions contribute to a sustainable future. Finally, the study examines gender variations in employee attrition and how talent management strategies are perceived. This is done by focusing on talent management and human resources.
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    The influence of financial literacy and financial technology on the financial behaviour of high school teachers in KwaZulu-Natal
    (2022-05-30) Jali, Nkosinathi Prince; Nyide, Celani John; Stainbank, Lesley June
    The argument that many people make financial decisions that are not in their best interest cannot be disputed. In using financial technology, there are both advantages and disadvantages. One disadvantage is that making irresponsible financial decisions has become easier since information is readily available to people, leading to a lot more debt. On the other hand, it can also make it easier for people to save more money, depending on their financial literacy level. Due to financial literacy, people are better able to make wise financial decisions and are more likely to save more money for the future. The Basic Education Department in South Africa is faced with a crisis of teachers leaving their profession prematurely. Some of the reasons cited for teachers’ resignations include the search for pension pay-outs that would redeem them from indebtedness. Teachers' mass resignations create a serious problem in the education system that not only compromises the quality of education, but also increases recruitment, training and development costs. Moreover, South Africa is facing this crisis at a time when there is a lack of qualified, experienced and competent teachers in critical subjects such as Mathematics, Science, and Technology. To determine the influence of financial literacy and financial technology on the financial behaviour of high school teachers in KwaZulu-Natal (KZN), this study employed a quantitative research approach. Data was collected from 246 high school teachers in Msunduzi Municipality KZN using a self-administered questionnaire. Several hypotheses were formulated and tested using regression analysis. The study revealed that most of the high school teachers in Msunduzi Municipality had sound financial management knowledge which enabled them to mitigate and navigate financial literacy challenges. However, maintaining or sticking to a planned budget and finding solutions when facing financial challenges were problems mentioned by the teachers. Nevertheless, most of the teachers demonstrated that they had good debt management skills and financial management and planning skills which helped them to draft monthly budgets and keeping track of expenses. Additionally, the teachers indicated that they had a good grasp of financial technology services, but also indicated that their knowledge of financial technology made it easier for them to access and spend the money; this led to poor savings and negative financial behaviour Furthermore, despite the convenience that financial technology services offer, they also highlighted the security risks of using this technology such as the possibility of being hacked or defrauded online by scammers. As this study used a quantitative research approach, it is suggested that another study should be conducted using a mixed methodology, which would help to expand the corpus of knowledge in this area.
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    The role of financial awareness for viable and sustainable small-medium enterprises in Kwa-Zulu Natal, Durban
    (2021-01) Msomi, Thabiso Sthembiso; Olarewaju, Odunayo Magret; Olarewaju, Odunayo
    The objective of this study is to examine financial awareness for viable and sustainable smallmedium-enterprises in Kwa-Zulu Natal, Durban. In this study, the researcher examined factors for SME sustainability and viability as they influence organisational survival. The specific objectives are outlined as follows: to examine the influence of financial awareness on SME viability and sustainability; to establish the relationship between financial accounting skills and sustainable SMEs; to establish the relationship between financial awareness and financial accounting skills; and to determine the Influences of budgeting and financial awareness on SME sustainability. The quantitative research method was adopted for this study and the purposive sampling technique was chosen to select the participants for this study. The study collected primary data from respondents who are owners of SMEs in the retail, construction, manufacturing sectors, etc. Data was analysed using SPSS. A total of 310 research questionnaires was administered and 304 research questionnaires were returned for analysis (giving a 98% response rate). A regression analysis and Pearson’s correlation analysis were conducted to address the specific objectives of the study. The study identified access to market, access to finance and financial accounting skills as the independent variables, while SME sustainability was the dependent variable of the regression model. The findings suggest that access to finance has the largest absolute value (0.425), which indicates that access to finance uniquely accounts for the larger proportion of the variance in the regression model. The outcome of Pearson’s correlation shows moderate correlation (r value is 0.531) between financial accounting skills and sustainable SMEs. Moreover, there was a weak correlation (r value is 0.457) between financial awareness and financial accounting skills. The outcome of the regression analysis suggests that budgeting has the largest absolute value (0.372), which indicates that budgeting uniquely accounts for the largest proportion of the variance in the regression analysis. The Exploratory Factor Analysis revealed nine factors that are significant to ensure sustainability and viability. The implication of the outcome is that access to finance and budgeting accounts for SME sustainability. Based on the findings from this research, it is recommended that SMEs owners should pay much attention to access to finance and budgeting in running their businesses. Again, employee performance reviews contribute to enhancing the financial accounting skills and knowledge of staff of SMEs as well. They should seek expert or professional advice before taking a loan and they should avoid loan sharks as the interest charged by loan sharks are very high which may lead to potential debt trap. It is suggested that Government agencies should help SMEs to market their products and keep their businesses viable.