The accounting professions’ role in financial management skills development of small businesses

Corrinna L Kirsten,Johannes R Fourie

doi:10.4102/jef.v5i2.294

Corrinna L Kirsten, Johannes R Fourie

Open Access

https://doi.org/10.4102/jef.v5i2.294

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Abstract

The support of small businesses in South Africa forms part of national strategies for creating jobs and wealth. To support small businesses, initiatives aimed at developing financial management skills (through training, support services and mentoring) are offered by various public and private sector organisations. Using a multi-case study design, this study explores the nature and extent of the financial management skills development interventions offered by a selection of Western Cape small business development support organisations. The study finds that the financial management skills development interventions on offer are generalised and limited in reach. Given the skills and expertise available in the South African accounting profession, the study also considers this profession’s involvement in financial management skills development interventions. The study’s main contribution is to demonstrate how members of the South African accounting profession can contribute to transferring financial management skills in a manner that will address the profession’s corporate social responsibility.

Highlights

AND BACKGROUNDIn 2010, the heads of the International Monetary Fund and the United Nations’ (UN) International Labour Organisation noted that a lack of job creation was preventing economic recoveries in developed economies as well as emerging economies (UN, 2010)
The 2006 winner of the International Award for Entrepreneurship and Small Business Research (FSF-Nutek Award), small businesses and the entrepreneurs that run them play an important role in driving economic development, since they bring about economic renewal and support the effective functioning of competitive markets (Douhan, Eliasson & Henrekson, 2007; Kirzner, 2009)
A multiple-case study design is appropriate for exploring the nature and extent of financial management interventions for small businesses, as rich data was required to understand the complex social and organisational processes underlying these interventions (Cassell & Symon, 2004:26); the intent of the research is descriptive (Benbasat, Goldstein & Mead, 1987:373); and the purpose of the study is to gain an understanding of the structure of the interventions in order to develop hypotheses, models or theories (Scholtz & Tietje, 2002:11) for the potential involvement of the accounting profession in financial management skills development for small businesses

Summary

Introduction

AND BACKGROUNDIn 2010, the heads of the International Monetary Fund and the United Nations’ (UN) International Labour Organisation noted that a lack of job creation was preventing economic recoveries in developed economies as well as emerging economies (UN, 2010). Small business development is an internationally recognised strategy for creating employment and reducing poverty. In its comprehensive survey of 175 000 entrepreneurs across 59 economies, including South Africa, the 2010 Global Entrepreneur Monitor (GEM) Report found that 250 million people were involved in early-stage entrepreneurial activities (Kelley, Bosma & Amorós, 2011:7). The GEM survey findings show that an estimated 63 million people are expected to hire at least five employees over the five years. Of these 63 million entrepreneurs, 27 million are expected to hire twenty or more employees over the five years

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