Proceedings of the 16th International Conference on Modern Research in Management, Economics and Accounting
Year: 2024
DOI:
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To explore the concept of internal detective controls as a strategic tool for the growth and expansion of small businesses in Mpumalanga, South Africa
Victoria Reneiloe Marule
ABSTRACT:
Detective internal controls usually foster compliance among small businesses and are the second line of defence to identify errors, theft, or omission that the preventive controls failed to block.
They provide a holistic technical view that safeguards and protects the assets of small businesses. However, limited knowledge of small business entrepreneurs and an inability to fail to isolate the unique risks facing small businesses negatively affect the detective internal controls in a business. Moreover, detective controls are often neglected. A qualitative method was adopted with the intention to make use of semi-structured interviews among 12 small business entrepreneurs. Small businesses were reluctant to participate due to their concerns about the information being gathered. Data analysis was performed by use of thematic analysis and systematic coding of interview transcripts using MAXQDA 2022. The results revealed that small business entrepreneurs lack financial readiness and technical and conceptual business management skills. Ineffective detective internal control activities lead to weak documentation, noncompliance, lack of skilled employees and volatile employee dynamics, inconsistent use of bank accounts, inadequate information systems and software, business continuity issues and lack of business management skills among many others. The emergence of trends and resilience strategies adopted by small business entrepreneurs provides a glimpse of what futuristic small business entrepreneurship looks like.
keywords: Conceptual Business Management skills, Effective Controls, Internal Detective controls, Risk Assessment, Small Business Entrepreneur