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Implementation of internal controls and the sustainability of SMEs in Harare in Zimbabwe

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  • Makomborero Bure

    (Cape Peninsula University of Technology, South Africa)

  • Robertson K. Tengeh

    (Cape Peninsula University of Technology, South Africa)

Abstract

Inspired by the assertion that preventative measures can prevent the failure of business enterprises, this paper sought to determine the types of internal controls and the degree to which SMEs implemented them in the central business district of Harare in Zimbabwe. By completing semi-structured questionnaires, the 135 respondents generated the quantitative data, which was analysed utilising Version 25 of the Statistical Package for the Social Sciences (SPSS) software. The results revealed that the conventional internal controls which are customary in larger business enterprises were either absent or not adequately implemented in the SMEs. A cross-gender comparison suggested that female-led SMEs were more likely to implement internal control systems than their male counterparts. By empirically justifying the need for internal control systems in SMEs, this paper contributes to both theory and practice, by reaffirming the effectiveness of internal controls and emphasising how their effective implementation can increase the sustainability of this business cohort.

Suggested Citation

  • Makomborero Bure & Robertson K. Tengeh, 2019. "Implementation of internal controls and the sustainability of SMEs in Harare in Zimbabwe," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 201-218, September.
    • Handle: RePEc:ssi:jouesi:v:7:y:2019:i:1:p:201-218
    DOI: 10.9770/jesi.2019.7.1(16)
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    References listed on IDEAS

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    Cited by:

    1. Oliver Henk, 2020. "Internal control through the lens of institutional work: a systematic literature review," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(3), pages 239-273, September.
    2. Oscar Chakabva & Robertson K. Tengeh & Jobo Dubihlela, 2020. "A holistic assessment of the risks encountered by fast moving consumer goods SMEs in South Africa," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 3321-3338, June.
    3. Ruba Hamed, 2023. "The Role of Internal Control Systems in Ensuring Financial Performance Sustainability," Sustainability, MDPI, vol. 15(13), pages 1-18, June.
    4. Zodwa Z. F. Mthiyane & Huibrecht M. van der Poll & Makgopa F. Tshehla, 2022. "A Framework for Risk Management in Small Medium Enterprises in Developing Countries," Risks, MDPI, vol. 10(9), pages 1-18, September.

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    More about this item

    Keywords

    sustainability; Small and Medium-sized Enterprises (SMEs); internal controls;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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