Financial management engagement and small and medium-sized businesses in eThekwini municipality, South Africa
Financial management engagement and small and medium-sized businesses in eThekwini municipality, South Africa

Summary/Abstract: Small and medium-sized businesses arewidely recognised as the cornerstone of growth inemerging and middle-class countries, and SouthAfrica is no different. They generate many jobpossibilities and salaries for many individuals wholive in cities, making them an essential component ofaverage national production. The main objective ofthe research was to examine the level to which Smalland Medium-sized businesses in theeThekwini Municipality used financial management.The research project used a quantitative method tocollect and analyse data from the field. The surveyincluded 60 participants from various small andmedium-sized businesses in eThekwini. Proprietorsand managers of small and medium-sized businesseswere among those who responded. The rate at whichorganisations implement systems that effectivelyorganise their money was a crucial component inanalysing the financial management engagements ofsmall and medium-sized businesses. This can beassessed in various ways, including distributingclosed-ended surveys to responders. As a result, theproprietors of small and medium-sized businesseswere prompted to score their companies based onthe level to which financial preparation strategieswere implemented and the funding sources. Theresearch found that small and medium-sizedbusinesses in the research areas did not developlong-term financial strategies that includedinvestments in non-current assets, shares, stocks,and real estate initiatives. Small and medium-sizedbusinesses must establish trustworthy systems foraccounting information, disclose and analyse theirfinancial challenges regularly, and advocate for lawsthat make it simpler for small and medium-sizedbusinesses to obtain inexpensive financing. Sincesmall and medium-sized businesses are recognisedas contributing significantly to national economicgrowth, they must keep growing.

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