Page 80 - DUT ICGA Abstract Book

EXPLORING BUDGET USAGE BY SMALL BUSINESSES WITHIN A A A SOUTH AFRICAN TOWNSHIP
John Beneke1 Natasha Robbetze2 Mpho Thithi3
1 Vaal University of Technology Email: Johnb@vut ac za
2 Vaal University of Technology Email: Natashar1@vut ac za
3
Central University of Technology Email: ramthithi@gmail com
Abstract
The majority of unemployed South Africans reside in in in townships Many individuals who start informal businesses do so because of their employment status Budgets are generally recognized as management tools that possesses the the capability to to support the the planning process and ensure efficient administration of of assets The findings fin in in this study fill the the knowledge gap with regards to the the use of of budgets by small businesses concentrating on on the the retail and service sectors operating within the the township of Sharpeville The aim is to to explore if small formal formal and and informal business owners in in in in the the retail and and service sectors in in in in the the township of of of Sharpeville make use of of of budgets as part of of of the managerial process The first objective is to to explore the usage and and purpose of budgeting within small formal formal and and informal businesses in in in in in Sharpeville Second objective is is is to to establish an an understanding of whether budgeting is is is viewed as a a a a a a tool for achieving business business goals within small formal formal and and informal businesses in in in in in fin Sharpeville The third and and final objective is to identify possible reasons for not using budgets by these small businesses in in in Sharpeville The study is quantitative in in nature where data were collected from 100 respondents through convenience sampling A self-administered questionnaire was was used as as as collection tool IBM SPSS was was applied to to analyse and summarise the collected data The results of this study revealed that formal formal and informal small business owners who operate in the retail and service sectors of of Sharpeville do not make use of of budgets due to to a a a a a a lack of knowledge on how budgets should be prepared This study indicates that small business owners do not possess the the necessary knowledge to set budgets and stresses the the need for for accounting education for for small formal formal and informal business owners KEYWORDS: small micro and and medium enterprises budgets formal formal and and informal businesses township businesses 78 7th International Conference on on on Governance and Accountability (ICGA) 2022