The Impact Of Training Courses On Financial Management Skills Of South African Small-Business Owners

Abstract

Short-term financial management skills are regarded as critical for South African small business owners to effectively manage their businesses so they may survive and grow. These skills can be developed by attending training courses, preferably those specifically designed for the small business environment offered by private sector service providers with the necessary experience and expertise. Record keeping, determining future profitability, managing working capital, measuring past performance, and tax and legal entity compliance are identified as key aspects in which small business owners require training. This study investigates the extent to which a training course, developed and presented by academics from the accounting profession, improved the knowledge of a group of South African small business owners regarding aspects of short-term financial management. A pre-test and post-test single group experimental design was used. In addition, the participants satisfaction with the training course and the trainers was assessed using a post-test design. The results show a significant increase in the participants knowledge of aspects of short-term financial management, as well as overall positive feedbac kregarding the training course and trainers. Challenges relating to language and the duration of the training course were identified. Future research on how such a training course could be combined with other types of interventions to further develop financial management skills is suggested.