ARTICLE CRITIQUE

South African manufacturing SMEs have sparked little interest in the research domain for its informal
business environment and multiple cultures. In their 2021 article, “An assessment of budgeting and budgetary
controls among SMEs: Evidence from a developing economy”, authors Mamorena Lucia Matsoso, Moses
Nyathi, and Franklin Nakpodia seeks to address the influence of budgetary controls on SMEs operations in the
South Africa manufacturing sector. The objectives of the study are to investigate budgeting and control
perceptions, as well as to analyze elements that influence establishment in both manufacturing sectors.

To investigate the impact of budgetary controls on SMEs in the manufacturing sector, a sample of data
from 170 manufacturing SMEs in Cape Town, South Africa, was collected. The authors' methodology is base
on Goal-Setting Theory (GST), which allows for closed-ended questionnaires. A random sample technique to
recruit respondents is employed using the Yamane Formula. Matsoso, M, Nythi, M. and Nakpodia, F. (2021)
assessed that there is a positive perception of budgetary controls by SME entrepreneurs and perception of the
value of budgeting mirrors the level of education. Manufacturing, although, is significant in every firm, receives
little attention and is frequently underutilized.

It is clear from the abstract of the article that this topic is no simple issue. The first few sections of the
text are somewhat confusing. The objectives set by the researchers in this study is to explore perception and
evaluate factors that influence establishments on budgetary controls among manufacturing SMEs. However,
Matsoso, M, Nythi, M. and Nakpodia, F. (2021) relies on the Goal-Setting Theory (GST), particularly in its use
in budgeting and budgetary controls that are very limited. GST literature is not yet fully explored on areas that
could help enrich the understanding of the theory. This lack of sources may affect the study as interpretation
may be inadequate.

The researchers employed students in their last year to help distribute the questionnaires throughout
the data gathering procedure. However, the safety protocols of covid-19 were not highlighted or discussed
during that process. Explaining the alternative methods used in distributing questionnaires to respondents
would be very helpful. Since the publication of the article in 2021, safety precautions will be the main focus. Is
it done online or offline, and is the collection process difficult, it will pique everyone's interest. Given the current
situation, this lack of detail would make it difficult to replicate and expand research on this type of study.

The study yielded significant findings, one of which is the sample size in this research. The sample size
was adequate. A total of 185 questionnaires were received and collected from the 344 potential respondents.
Unfortunately, 15 of these were discarded due to incomplete responses. With a response rate of 49 per cent,
the study is credible because it falls within the tolerable margin of error. As a result, the study's findings are
more accurate and relevant to the chosen topic.
 Overall, the article is well-written and serves an important function. It was designed to investigate and
assess budgeting and perception in manufacturing SMEs. Though the literature is somewhat confusing, and
some studies contradict the theories employed. It is still a useful and factual study.

Matsoso, M, Nythi, M. and Nakpodia, F. (2021) shared informative results to explore the perceptions of
budgeting and controls as well as evaluate factors that influence the establishment in both manufacturing
sectors. In the study, both sample size and respondents were extremely dependable resulting in precise and
accurate findings. However, given that we are in the midst of a pandemic, the authors should address and
describe the method of distributing questionnaires in such a situation. Furthermore, employing the Goal-
Setting Theory for such a project is risky as its relevant sources within research domains are restricted and
limited. Future studies on budgeting and budgetary controls in SMEs, with a broader realm of literature, will be
much valued by future scholars.
References:

Matsoso, M, Nythi, M. and Nakpodia, F. (2021). An assessment of budgeting and budgetary controls among
SMEs: Evidence from a developing economy. https://doi.org/10.1108/JAEE-04-2020-0082

Marsden, D. and Richardson, R. (1994), “Performing for pay? The effects of ‘merit pay’on motivation in a
public service”, British Journal of Industrial Relations, Vol. 32 No. 2, pp. 243-26