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The influence of management's accounting skills on the existence of their South African small, medium and micro enterprises

In South Africa (RSA), small, medium and micro enterprises (SMMEs) provide assist government with the reduction of unemployment and poverty. Unfortunately, research shows that RSA SMMEs are not sustainable as 70% fail after being operating for three years. This phenomenon is caused by the non-management of economic factors, including a lack of skills. In a recent study, basic business skills evident in RSA SMMEs were found to leave much to be desired. One of these skills is that of accounting skills. Accounting skills should assist with making economic business decisions; taking into account the failure rate of RSA SMMEs, the question arises: Do the accounting skills of management influence the existence of RSA SMMEs? To answer this question, empirical research was conducted and data were collected from respondents. From the results, respondents who were equipped with accounting skills were more likely to remain in existence for the foreseeable future.