Title: The influence of management's accounting skills on the existence of their South African small, medium and micro enterprises

Authors: Ernest Mbumbo; Henrie Benedict; Juan-Pierré Bruwer

Addresses: Department of Cost and Management Accounting, Cape Peninsula University of Technology, Cape Town, South Africa ' Department of Financial Accounting and Taxation, Cape Peninsula University of Technology, Cape Town, South Africa ' Graduate Center for Management, Cape Peninsula University of Technology, Cape Town, South Africa

Abstract: In South Africa (RSA), small, medium and micro enterprises (SMMEs) provide assist government with the reduction of unemployment and poverty. Unfortunately, research shows that RSA SMMEs are not sustainable as 70% fail after being operating for three years. This phenomenon is caused by the non-management of economic factors, including a lack of skills. In a recent study, basic business skills evident in RSA SMMEs were found to leave much to be desired. One of these skills is that of accounting skills. Accounting skills should assist with making economic business decisions; taking into account the failure rate of RSA SMMEs, the question arises: Do the accounting skills of management influence the existence of RSA SMMEs? To answer this question, empirical research was conducted and data were collected from respondents. From the results, respondents who were equipped with accounting skills were more likely to remain in existence for the foreseeable future.

Keywords: management accounting; accounting skills; SMMEs; existence.

DOI: 10.1504/IJEED.2019.100670

International Journal of Education Economics and Development, 2019 Vol.10 No.3, pp.323 - 334

Received: 30 May 2018
Accepted: 21 Dec 2018
Published online: 06 Jul 2019 *

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