Thesis (MTech (Cost and Management Accounting))--Cape Peninsula University of Technology, 2017. / Background: Research has shown that a high percentage of SMMEs in South Africa are not sustainable, most of them failing in their infancy stage. In order to make sound decisions and achieve desirable results, owners/managers need to make use of budgets in managing their businesses. Utilisation of budgets is the core of financial planning and decision-making in manufacturing enterprises. Lack of utilisation of budgets in managing businesses can lead to business failure. There is need to conduct a study on the utilisation of budgets by SMEs in the manufacturing industry. Objectives: The aim of this study was to determine the extent to which SMEs in the manufacturing industry in the Cape Metropolis use budgets for managing their businesses. This was achieved by determining whether the SMEs in the manufacturing industry used budgets or not, what types of budgets were used, the purposes for which the budgets were used and what challenges if any were faced by these SMEs when using budgets. Methodology: Data was collected from 108 respondents by means of a questionnaire comprising closed-ended questions. Descriptive statistics were employed to analyse the data in SPSS version 24. Frequency tables and pie charts were used to present the findings. Findings: The findings of the study reveal that most SMEs in the manufacturing industry in the Cape Metropolis use budgets for managing their businesses. The SMEs prepare budgets which are used for various purposes. The SMEs however face challenges when utilising budgets. Recommendations: Future interventions by Department of Small Business Development on financial planning should focus more on micro and very small enterprises. Other categories of enterprises may apply this information and emulate the utilisation of budgets from the SMEs in the manufacturing industry as they strive to survive and grow.

The use of financial planning and control systems is one of the factors that influence the survival of small businesses. The purpose of this study was to determine whether the use of financial planning and control systems contributes to the survival of manufacturing MSEs in the Tshwane metropolitan area. The development and use of financial planning and control systems in MSEs was investigated. Manufacturing MSEs were asked to disclose the financial planning and control systems being utilised. Respondents indicated that they use some form of financial planning and control, be it, on a formal or informal basis. Most of these firms had been operating for a number of years suggesting that the use of financial planning and control systems, inter alia, contributes to the survival of an entity. The more modern financial planning and control systems are not readily used by manufacturing MSEs, but could be beneficial to their survival. / Management Accounting / M. Com. (Accounting)

The use of financial planning and control systems is one of the factors that influence the survival of small businesses. The purpose of this study was to determine whether the use of financial planning and control systems contributes to the survival of manufacturing MSEs in the Tshwane metropolitan area. The development and use of financial planning and control systems in MSEs was investigated. Manufacturing MSEs were asked to disclose the financial planning and control systems being utilised. Respondents indicated that they use some form of financial planning and control, be it, on a formal or informal basis. Most of these firms had been operating for a number of years suggesting that the use of financial planning and control systems, inter alia, contributes to the survival of an entity. The more modern financial planning and control systems are not readily used by manufacturing MSEs, but could be beneficial to their survival. / Management Accounting / M. Com. (Accounting)