The utilisation of adequate internal controls in fast food SMMEs operating in the Cape Metropole.

According to popular literature, South African small medium and micro enterprises (SMMEs), roughly contribute towards 50% of the South African gross domestic product and an estimated 60% of the total employment of the Country. In essence, these business entities are considered as the ‘heart’ to the South African economy, but unfortunately the current survival rate of these SMMEs leaves much to be desired. The current weak survival rate is believed to stem from both external- and internal economic factors. Essentially, the authors of this paper formed the perception that the effect of these economic factors can be limited if adequate internal control processes are put in place. Hence, the main objective of this study was to determine the extent to which SMMEs make adequate use of internal controls. This empirical research study was deemed as descriptive research, and fell within the ambit of the positivistic research paradigm. Quantitative research techniques were utilised by administering questionnaires to 30 SMMEs owners and/or managers whom actively operated within their businesses in the fast food industry. Non-random sampling (purposive sampling) was made use of with the main intention of obtaining rich data for the purpose of analyses. From the descriptive analyses, relevant findings were made and relevant recommendations and conclusions were made