Dissertation submitted in fulfilment of the requirements for the degree of Master of Technology: Internal Auditing in the Faculty of Business at the Cape Peninsula University of Technology 2013 / At present, South African Small Medium and Micro Enterprises (SMMEs) play an important role in the stimulation of the national economy. Despite the above, prior research shows that the failure rate of these entities is exceedingly high. Several factors which impact on SMME sustainability have been identified by prior research and as a result SMME sustainability has received attention from both local- and national Government. One of the factors, which is perceived as a major contributor towards the high failure rate of SMMEs, is the lack of proper internal controls. The responsibility to implement internal controls and internal control frameworks, including the task to ensure that these controls are optimally used, lies with management. In essence, it can be said that a business that is uncontrollable, is ultimately, unmanageable. The analogy was made by the author that “SMMEs are perceived as not sustainable owing to the utilisation of inadequate internal controls”. With the absence of adequate internal controls, an environment would be created where a business is susceptible to all kinds of detrimental risks (for example, fraud risk). When these risks are realised within a small business environment the overall sustainability of such a business will, more often than not, be negatively impacted upon. The main objective of this study was to determine the degree to which the implementation of an adequate system of internal controls can help to improve SMMEs’ sustainability. The research that was conducted was empirical in nature and fell within the ambit of the positivistic research paradigm. The logical stance that was undertaken in this study was that of deductive reasoning and, furthermore, this research was regarded as applied research which incorporated quantitative research characteristics. To achieve the above dispensation, questionnaires were administered and distributed to 110 owners and/or managers of SMMEs which operated within the fast moving consumer goods industry, situated in the Cape Peninsula. The non-probability sampling technique that was executed comprised of purposive sampling, and data that were collected from this research was analysed by deploying descriptive and inferential statistics. Lastly, the research conducted found that SMMEs have implemented internal controls as part of their business measures; however, the issue remains that a majority of these SMMEs are not aware of formal internal control frameworks to further enhance their existing internal control processes. To remedy the above concern, the author was of the perception that respondents should be trained on formal internal control frameworks in order to address the concern of limited awareness of existing internal control frameworks.

Dissertation submitted in fulfilment of the requirements for the MTech: Internal Auditing In the Faculty of Business at the CAPE PENINSULA UNIVERSITY OF TECHNOLOGY, 2010 / The concept of Small Medium and Micro Enterprises (SMMEs) was created and implemented by the South African Government in an attempt to improve the economy of South Africa, reducing the unemployment rate and eliminating poverty. As a basic objective, SMMEs strive toward sustainability, however in recent years sustainability is at an all time low as substantial a number of these businesses fail to become viable entities. Popular literature show that Fast Moving Consumer Goods (FMCG) retail SMMEs make ineffective use of their accounting resources, resulting in them making critical business decisions without understanding and interpreting their financial performance or financial positions. These decisions have a ‘toxic’ affect on their business sustainability and as a result, it is perceived that these SMMEs make inefficient use of financial performance measures. The key objective of this research is to establish what financial performance measures sourced from accounting resources are regarded as being critical for the sustainability of FMCG retail SMMEs during the current dispensation of an economic depression in South Africa. To achieve the above dispensation, applied research will be used using ‘action research’ as the primary research paradigm supported by questionnaires for the purpose of data analysis, results of which were analysed using descriptive and inferential statistics. Recommendations culminate from the research to mitigate the research problem.

Thesis (MTech (Human Resource Management)--Cape Peninsula University of Technology, 2009 / This thesis explores the barriers/constraints that the SMME may experience whilst attempting to recover their skills levies from the wholesale and retail SETA (W&RSETA). Skills development legislation was introduced in South Africa to address the previous disparities in education and training. The Skills Development Levies Act (SOLA) of 1999 established the introduction of skills levies. The SOLA stipulated that all companies with an annual payroll in excess of R 500 000 would be required to pay skills levies to the South African Revenue Service (SARS). SARS then distributes the funds to the relevant sector education and training authority (SETA). The company would then have the option of recovering up to seventy percent of its skills levies, provided that it had implemented various skills development and training initiatives throughout the year. While larger companies may be more attuned in terms of recovering these levies, small, micro and medium enterprises (SMMEs) may experience difficulties in doing so. The research design included a descriptive study of both qualitative and quantitative components. The investigation was conducted by interviewing twenty stakeholders within the wholesale and retail sector. The stakeholders were divided into two categories, namely SMMEs and the assistants to SMMEs. The information was analysed within the context of the twenty stakeholders interviewed who were located in the Westem Cape area and registered with the W&RSETA. The findings indicated that the main constraints that SMMEs may be experiencing whilst attempting to recover their skills levies from the W&RSETA included: a lack of understanding of the grant recovery system; lack of time; burdensome administration; a lack of finance; and a lack of communication and support from the W&RSETA This research would be a pilot study that would provide a basis for a future study which may seek to provide practical recommendations to policy makers both in govemment and the private sector, in terms of assisting levy paying SMMEs within the W&RSETA to recover skills levies.