Financial performance measurement of manufacturing small and medium enterprises in Pretoria : a multiple exploratory case study
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Authors
Ismaila, Bouba
Issue Date
2011-11
Type
Dissertation
Language
en
Keywords
Manufacturing , Small and Medium Enterprises , Financial performance measures
Alternative Title
Abstract
Small and Medium Enterprises (SMEs) contribute substantially in economies around the world and in South Africa in particular. This study aimed to explore and describe the financial performance measures currently used by manufacturing SMEs in Pretoria. Semi-structured interviews were conducted at the participant SMEs’ premises in order to gather the information.
It was found that most of the respondents use financial ratios, but to a limited extent, when measuring their financial performance. The use of bankruptcy prediction models is totally absent among the participants.
It has been recommended that SMEs use more ratios from the literature that have been proven to be the best financial measures, and the six ratios that have worked well for some of the participants in the study. It is also recommended that SME owners enrol their financial staff for training in bankruptcy prediction models, and use financial software packages if they can afford them.
Description
Citation
Ismaila, Bouba (2011) Financial performance measurement of manufacturing small and medium enterprises in Pretoria : a multiple exploratory case study, University of South Africa, Pretoria, <http://hdl.handle.net/10500/6052>