The existence of financial information systems in small medium and micro enterprise (SMMEs) in the Cape Metropole

Abstract

Popular literature describes small, medium and micro enterprises (SMMEs) as economic failures, due to a lack of important resources that are availed to entrepreneurs. Such limited exposures to resources include that of adequate financial information systems, as it is perceived to guarantee a ‘cutting-edge’ advantage that has a positive effect on the sustainability of these enterprises. The main objective of this research was to determine to what extent SMMEs make use of adequate financial performance measures. This empirical research was deemed as descriptive research, and fell within the positivistic research paradigm. Moreover, quantitative research was used to obtain numeric data. The questionnaire-tool was used to gather data from thirty SMME owners and/or managers. The sampling method deployed was purposive sampling with the main intention to glean rich and accurate data. All responses were voluntary and respondents were assured of confidentiality and anonymity. Relevant research findings were obtained by making use of descriptive statistics and appropriate recommendations and conclusions were made to mitigate the identified research problem. Key words: Small business, financial information systems, small medium and micro enterprises (SMMEs), South Africa, Cape Metropole.