Journal of Small Business and Entrepreneurship Development

Impact of Internal Controls in Managing Resources of Small Business: Case Study of Botswana
Tumisang Sankoloba, Prof. B.N. Swami

Abstract
This paper examines the importance of internal controls in managing resources of small businesses of Botswana. This research is driven by the arguments that small businesses lack internal control as a result they end up failing. Different authors propose that internal controls play an important role in preventing abuse and misuse of resources. The research here is designed to investigate further into this issue by assessing whether small businesses have internal controls and if so whether internal controls are costly to implement. This was done by obtaining information from 52 randomly selected respondents and the conclusion derived from these responses is that internal controls are significant in managing resources of a small business hence owners and employees should train themselves in order to be more knowledgeable about internal controls. It is noted that the owners were aware that there should be internal controls in place but identified they are not in a position to maximize the effectiveness of internal controls to their advantage.

Full Text: PDF