Page 82 - DUT ICGA Abstract Book

IMPROVING CAPITAL BUDGETING PLANNING AND PRACTICES THROUGH THE HUMAN FACTOR: A A A A CASE OF SMES
Naresh Nunden and
Department of of of Management Accounting Accounting Faculty of of of Accounting Accounting and
Informatics Durban University of of of Technology KwaZulu-Natal South Africa
E-mail: roshann@dut ac za
Upaasna Ramraj
Department of of of Information Information and
and
Corporate Information Information Faculty of of of Accounting and
and
Informatics Durban University of of of Technology KwaZulu-Natal South Africa
E-mail: upaasnar@dut ac za
Sharanam Abbana
Department of of of Financial Accounting Accounting Faculty of of of Accounting Accounting and
Informatics Durban University of of of Technology KwaZulu-Natal South Africa
E-mail: SharanamA@dut ac za
Abstract
Budgets are a a a a a a a foundation of any business manifesting in in in its practices to provide the direction for actions and
and
and
inactions The management of small and
and
and
medium enterprises (SMEs) has to maintain proper and
and
and
appropriate capital budgeting processes and
and
techniques to ensure survival and
and
possible growth There is is is a a a a a a a a high risk of SMEs failing soon after they are established with one likely cause being poor capital budgeting planning and
practices Thus the the the study aims to to ascertain the the the factors impacting the the the capital budgeting planning and
practices of of SMEs The objective is to determine the degree of of staff participation in in in in in capital budgeting planning and
practices The study adopted the quantitative method by administering questionnaires to the the staff of a a a a a a a a 108 SMEs based in in the the Springfield Industrial Park Durban South Africa
The findings of of the study indicate that majority of of staff lack participation are lowly skilled fin in in in computer literacy and
and
financial skills thus impacting the capital budgeting and
and
planning process Secondly upward and
downward communication communication levels were not prevalent hence more effective communication communication channels are fundamental The study was limited to to staff in the the SMEs and
therefore cannot be generalized to to any other other area or subject/s Future studies can be conducted in other other regions of which a a a a a a comparative study is recommended that staff in in in in SMEs improve their knowledge in in in in conducting a a a a a capital budgeting process and
business Thus the the implications of excluding staff may lead to poor decision-making It is is therefore recommended that more consideration be given to staff participating upgrading computer literacy and
financial skills fin in in business processes KEYWORDS: Capital budgeting human factor planning and
practices JEL CLASSIFICATION: M12 and
M41 80 7th International Conference on on on Governance and
Accountability (ICGA) 2022