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Title: The role of small and medium-sized practices in the provision of financial and other advice to local small businesses
Authors: Mamo, Stephanie (2011)
Keywords: Consulting firms
Small business
Business enterprises -- Finance
Issue Date: 2011
Abstract: Purpose: A shift towards demands by SMEs for services of a business support nature has directed further research into the provision of business advisory services by SMPs. The study aims to identify the services currently provided by SMPs to SMEs, the barriers SMPs come across when dealing with SMEs and what characteristics ensure a well-built SME-SMP relationship that enables the SMP to pursue a value-added role. Design: A survey - based questionnaire was distributed to local SMPs with the aim to achieve the objectives of the study. The questionnaire was based on the survey questionnaire used in the study conducted by Devi and Samujh (2010) in Malaysia (ACCA Research Report 118). Statistical analysis of the results was performed through SPSS and Microsoft Excel. Findings: Although a number of business advisory services provided by SMPs to SMEs were identified, compliance-related services such as audit and the filing of tax returns remain the two most provided services by SMPs. The most prominent business advisory service is tax planning. Highly specialized services are only provided by less than 30% of the respondents. The most significant barrier that the surveyed SMPs experience is the lack of suitably qualified staff. Human resources would enable local SMPs to increase the array of services they provide to SMEs. Other barriers include the shortage of skilled bookkeepers by SMEs and the reluctance of SMEs to pay for additional services. Despite this, the local SME-SMP relationship is a positive one, based on trust and frequent contact. Conclusions: A number of solutions were proposed in order to ensure further growth in the business advisory sector. To overcome the barriers SMPs should seek to develop referral networks and invest in a diverse human capital. Implications: This study provides a platform for further research into the dynamics of the SME-SMP relationship and illustrates the importance and growth potential of SMPs and their role in the local accountancy profession.
Description: B.ACCTY.(HONS)
Appears in Collections:Dissertations - FacEma - 2011
Dissertations - FacEMAAcc - 2011

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