Financial Management Engagement and Small and Medium-Sized Businesses in eThekwini Municipality, South Africa

Abstract

The research aim was to examine the level to which Small and Medium-sized businesses in the eThekwini Municipality used financial management engages. In collecting and analysing data from the field, the research project took a quantitative method. The survey included 60 participants from various types of small and medium-sized businesses in eThekwini. Proprietors and managers of small and medium-sized businesses were among those who responded. The rate at which organisations implement systems that effectively organise their money was a key component in analysing the financial management engagements of small and medium-sized businesses. This can be assessed in a variety of ways, including the distribution of closed-ended surveys to responders. Furthermore, the proprietors of small and medium-sized businesses were prompted to score their companies based on the level to which financial preparation strategies were implemented and the funding sources of money. The research found that small and medium-sized businesses in the research areas did not develop long-term financial strategies that included investments in non-current assets, shares, and stocks, as well as real estate initiatives. Small and Medium-sized businesses must establish trustworthy systems for accounting information, disclose and analyse their financial challenges on a regular basis.