Accounting skills and the sustainability of Small and Medium Enterprises in South Africa

  • Odunayo Olarewaju Durban University of Technology
  • Thabiso Msomi Durban University of Technology
Keywords: Financial Record; Bookkeeping; Viability; Sustainability; Small businesses

Abstract

The objective of this study is to examine the accounting skills and sustainability of small-medium-enterprises. 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. The outcome of Pearson’s correlation shows moderate correlation (r value is 0.531) between accounting skills and sustainable SMEs. There is also a significant effect of accounting skills on sustainability as revealed in p-value <0.0005. Thus, it was concluded that SME owners need more accounting training or bookkeeping awareness. This is because training will equip SMEs owners with the needed skills to ensure accurate recording of business transaction which is beneficial when the need for financial assistance from banks or other financial institution arises.

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Published
2021-02-02
Section
Articles