Please use this identifier to cite or link to this item: https://hdl.handle.net/10321/3681
Title: The role of financial awareness for viable and sustainable small-medium enterprises in Kwa-Zulu Natal, Durban
Authors: Msomi, Thabiso Sthembiso 
Editors: Olarewaju, Odunayo 
Issue Date: Jan-2021
Abstract: 
The objective of this study is to examine financial awareness for viable and sustainable smallmedium-enterprises in Kwa-Zulu Natal, Durban. In this study, the researcher examined factors
for SME sustainability and viability as they influence organisational survival. The specific
objectives are outlined as follows: to examine the influence of financial awareness on SME
viability and sustainability; to establish the relationship between financial accounting skills
and sustainable SMEs; to establish the relationship between financial awareness and financial
accounting skills; and to determine the Influences of budgeting and financial awareness on
SME sustainability. The quantitative research method was adopted for this study and the
purposive sampling technique was chosen to select the participants for this study. The study
collected primary data from respondents who are owners of SMEs in the retail, construction,
manufacturing sectors, etc. Data was analysed using SPSS. A total of 310 research
questionnaires was administered and 304 research questionnaires were returned for analysis
(giving a 98% response rate). A regression analysis and Pearson’s correlation analysis were
conducted to address the specific objectives of the study. The study identified access to
market, access to finance and financial accounting skills as the independent variables, while
SME sustainability was the dependent variable of the regression model. The findings suggest
that access to finance has the largest absolute value (0.425), which indicates that access to
finance uniquely accounts for the larger proportion of the variance in the regression model.
The outcome of Pearson’s correlation shows moderate correlation (r value is 0.531) between
financial accounting skills and sustainable SMEs. Moreover, there was a weak correlation (r
value is 0.457) between financial awareness and financial accounting skills. The outcome of
the regression analysis suggests that budgeting has the largest absolute value (0.372), which
indicates that budgeting uniquely accounts for the largest proportion of the variance in the
regression analysis. The Exploratory Factor Analysis revealed nine factors that are significant
to ensure sustainability and viability. The implication of the outcome is that access to finance
and budgeting accounts for SME sustainability. Based on the findings from this research, it is
recommended that SMEs owners should pay much attention to access to finance and
budgeting in running their businesses. Again, employee performance reviews contribute to
enhancing the financial accounting skills and knowledge of staff of SMEs as well. They should
seek expert or professional advice before taking a loan and they should avoid loan sharks as the interest charged by loan sharks are very high which may lead to potential debt trap. It is
suggested that Government agencies should help SMEs to market their products and keep
their businesses viable.
Description: 
Submitted in fulfilment of the requirements of the degree of Master of Accounting: Management Accounting in the Faculty of Accounting and Informatics at the Durban University of Technology, 2021.
URI: https://hdl.handle.net/10321/3681
DOI: https://doi.org/10.51415/10321/3681
Appears in Collections:Theses and dissertations (Accounting and Informatics)

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