Original Research

Performance measurement in small and medium enterprises: South African accountants' view

Elize Kirsten, Frans N.S. Vermaak, Hendrik P. Wolmarans
Journal of Economic and Financial Sciences | Vol 8, No 1 | a81 | DOI: https://doi.org/10.4102/jef.v8i1.81 | © 2015 Elize Kirsten, Frans N.S. Vermaak, Hendrik P. Wolmarans | This work is licensed under CC Attribution 4.0
Submitted: 21 December 2017 | Published: 30 April 2015

About the author(s)

Elize Kirsten, Department of Financial Management, University of Pretoria, South Africa
Frans N.S. Vermaak, Department of Financial Management, University of Pretoria, South Africa
Hendrik P. Wolmarans, Department of Financial Management, University of Pretoria, South Africa

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Abstract

Small and Medium Enterprises (SMEs) are important catalysts of economic growth, creating employment opportunities and contributing to the gross domestic product (GDP) of their respective countries. Unfortunately, SMEs suffer from a high failure rate due to SME managers’ lack of managerial knowledge and skills. SME managers also do not use performance measures which are important in business management and provide support to the managers in decision-making processes. This study contributes to the existing knowledge by determining that the use of a performance measurement tool is important in SMEs, as it can help to improve their performance and chances of survival. Accountants have the knowledge and skills to help SMEs to measure their performance and to achieve their business objectives. Accountants calculate financial ratios, explain the results and provide advice to SMEs. They, however, do not develop a Balanced Scorecard, although they perceive it to be beneficial to the SMEs.

Keywords

small and medium enterprises (SMEs); performance measurement; financial ratios; balanced scorecard; accountants

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