M.B.A. / The Black enterprise sector in South Africa has, despite a long history of exclusion and restriction, substantial potential to help distribute employment, income, and wealth more equitably between whites and blacks. This report summarizes research on the subject and attempts to evaluate realistically the potential role that small black enterprise can play in this effort. It also examines the challenges and constraints that face small black businesses. South Africa's small black business is highly constrained by the restrictions that apartheid placed on the establishment of businesses, on the opportunities for skilled employment, and on the educational opportunities for blacks as well as by the restrictions affecting the spatial arrangement of cities (Riley, 1993: ix) Despite severe constrains, evidence of dynamic growth does exist, notably among small light manufacturing enterprises, whose incomes and employment are above averages for the sector. Also, the incomes of even the most survival-level businesses are critical to the survival of many households. The small black businesses has two distinct roles that deserve to be supported in any project or policy intervention: it is a residual employer with an important role to play in improving welfare and alleviating poverty, and it is a source of dynamic and potentially dynamic firms that create wealth and generate employment. (Riley, 1993: ix) Since the dawn of democracy in South Africa in April 1994, the government has come up with concerted efforts to create a conducive environment for developing Small, Medium, and Micro Enterprises (SMMEs), particularly from historically disadvantage individuals (Petje: i) Approach chosen for the study was to personally interview eight respondents both from established business and black small businesses with the aid of a structured interview schedule. Questions were open ended and allowed for self expression by the respondents. The nature of the research was to be investigative rather than to provide statistical measure of dependency.

M.Comm. / Towards addressing the detrimental economic effects past dispensations had on the marginalized majority, different Government initiatives and other interventions have been put in place to encourage the participation of Blacks in the economy of South Africa. These development initiatives seek to address poverty and unemployment levels, some focussing on growing small, medium, and micro enterprises (SMMEs). Growth and sustainability of such businesses can only be achieved through the maintenance of appropriate financial information, on which economic decisions are based, but such information can only be generated or processed if relevant and adequate accounting data, through accounting recordkeeping, are maintained. The study examines whether this is also applicable to micro or survivalist businesses, and was carried out to investigate the accounting records maintained by small Black-owned businesses in QwaQwa. In the literature study it became vital to elucidate the uniqueness of micro and survivalist businesses as they are often generalised under the rather broad umbrella of the term ‘SMMEs’. The literature further indicates that there is no prescribed regulation or framework specifically for accounting recordkeeping in micro and survivalist businesses. The dissertation analyses responses to questionnaires administered to a purposively selected sample of 88 small Black-owned businesses in QwaQwa, and interpreting 44 respondents interviewed. The interviews became necessary due to insufficient responses to the section in the questionnaires addressing the third research objective. Hence, both a quantitative and a qualitative research design were eventually used. Data collection took place at respondents’ business premises. Responses to the questionnaires were analysed using Statistical Package for the Social Sciences (SPSS), which was used to generate descriptive statistics. The researcher documented the interview proceedings in written format. Common responses from interviews were clustered in themes then interpreted. Results show that small Black-business owners maintain some basic form of accounting records such as sales records, payment records and stock records, however, since they operate mainly on the cash basis, debtors’ and creditors’ records were seldom maintained. These findings are consistent with previous studies into the kind of accounting records maintained by small businesses. Small Black-business owners also perceived maintaining accounting records to be important in determining the profitability and future sustainability of their businesses. These owners, however, demonstrated limited understanding of accounting concepts and principles or how these applied to their business. They identified a need for some form of interventions to improve their knowledge of accounting recordkeeping and risk management. A further need identified was the availability of funds to finance their businesses. Therefore, financial help together with training and development are needed to better their businesses. This may go a long way in improving growth and stability, as well as reducing the poverty and unemployment rate in the country. In order for micro and survivalist business owners to realise some of the benefits of maintaining relevant accounting records, it is recommended that the owners are trained on how to keep basic accounting records that are useful and easy to convert into accounting information, and that may add value to their businesses and ensure the monitoring of profitability and sustainable growth.