Use of Management Accounting Practices: A Remedy or Delusion for SMEs in Zimbabwe

Banele Dlamini ()
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Banele Dlamini: Lupane State University

EuroEconomica, 2023, issue 2(42), 99-112

Abstract: This study examined the benefits associated with the use of Management Accounting Practices (MAPs) among Small and Medium Enterprises (SMEs) in Zimbabwe. Literature reveals that there are numerous benefits associated with the use of management accounting among SMEs. This study then sought to assess whether the benefits perceived in the use of management accounting are a myth or a reality among SMEs. A mixed-methods approach and purposive sampling technique were adopted, and data was collected from 188 SME firms from the four provinces in Zimbabwe. The study found that there is a low uptake of management accounting among SMEs in Zimbabwe. The findings indicated that the use of management accounting enables firms to raise more funds among small businesses. In addition, SMEs establish a competitive edge by utilizing MAPs to evaluate profitable prospects and possible risks, and the management accounting function fosters the cultural values necessary to achieve an organization’s strategic objectives. The study recommends that there is a need to increase awareness of the benefits associated with the use of management accounting, which will enhance the uptake of MAPs. There is a need to increase awareness about the importance of MAPs in SMEs, as these tools are critical ingredients for success.

Keywords: Management Accounting; Small and Medium Enterprises; Management Accounting Practices; Benefits; Zimbabwe (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:dug:journl:y:2023:i:2:p:99-112

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