ARTICLE CRITIQUE Topic: An Assessment of Budgeting and Budgetary Controls among SMEs: Evidence from a Developing Economy Submitted by Ponce, Neriza D. August 18, 2021 Small and Medium-sized Enterprises in developing economy plays an important role particularly in emerging countries, but Entrepreneurs/Stakeholders and economic agents faces bigger challenges in terms of using the system of budgeting and budgetary controls. The article entitled “An Assessment of Budgeting and Budgetary Controls among SMEs: Evidence from a Developing Economy” Mamorena Lucia Matsoso; Nyathi, Moses; and Nakpodia, Franklin A. (2021) assessed the effectiveness and perception of budgeting and budgetary control systems among the Small and Medium-sized Enterprises (SMEs) in an emerging economies. Moreover, this paper has a purpose of knowing/measuring the SMEs operators and economic agents in their capacity to plan, manage and control SMEs upon realizing their organizational goals. Furthermore, this study reinforces the communication power of budgeting and budgetary controls as SMEs and economic agents are not only aware of corporate objectives but are equally incentivized to support the attainment of these objectives. Matsoso, Nyathi, and Nakpodia (2021) relies on the goal setting theory and a methodology that accommodates questionnaires, which the data were collected from 170 manufacturing SMEs located in Cape Town, South Africa wherein it is designed for their assessment implementation of knowing the effectiveness and perception of budgeting and budgetary control system among SMEs in developing economy. The Researchers gathered some information to the extent of the answers given by the 170 manufacturing SMEs which also based on the answer sheet/questionnaires given to them. Matsoso, Nyathi, and Nakpodia found a results that affirms that the deployment of budgeting benefits from a positive perception of the value of budgeting and budgetary controls by key SME stakeholders that the perception of budgeting mirrors the level of education that the SMEs operators had, where an educated respondents understands the value of implementing robust budgeting systems. It is also stated that the study suggests that the manufacturing budget is the least utilized budgeting system among those organizations. The Researchers gives an assessment in the effectivity and perception of the budgeting and budgetary controls while the SMEs Entrepreneurs/Stakeholders and economic agents improves their economic development by organizing their goals and knowing their capacity upon implementing plans, managing their economic growth as well as controlling the manufactory budgeting. The approach of gathering data based on the answered questionnaires among 170 manufacturing SMEs could be useful in a way that they can assess the level of effectivity and the perception in the budgeting and budgetary control system among the SMEs by which it is also serves as their guide of knowing some insights to suggest into the SMEs Entrepreneurs and economic agents. The value of applying the goal setting theory, wherein the use of budgeting and budgetary controls particularly in emerging economies is limited, and also in line with this theory indicates that when an agent establish and implement a plan, they are motivated to pursue and realize the set expectations while consistently evaluating themselves for improvement opportunities. Researchers provide the findings that answer the problem itself and achieved the purpose of their study but they didn’t mentioned much of the details about the administration of general economic program and in what way they reach out the certain respondents in Cape Town in South Africa and how many of them answered out of 170 manufacturing enterprises. With these issues, it is difficult to picture things out on how they gather the result whether or not through online survey or face to face survey since this year’s when they conducted research was the occurrence of COVID19 pandemic and there was lockdown in some areas. Moreover, it is difficult to determine the level of effectiveness and whether or not all of the respondents have an average capacity of perceiving the budgeting and budgetary control system and how many among of those 170 manufacturing enterprises answered that gives higher level of knowledge about it. There might be some difficulties upon providing general management control in the certain area since it is only limited upon using the goal setting theory as what Researchers relied upon gathering some information. This article focused on an important role that caters some SMEs in the Cape Town, South Africa, as SMEs Entrepreneurs/Stakeholders in developing economy tasked to provide an effective budgeting and budgetary control system. One of SMEs in developing economies risk and issues is their Budgets, where it is hard for them to maintain their economic balance and growth. So, assessment of budgeting and budgetary control system helps them to plan, manage, and control their budgets well. Matsoso, Nyathi, and Nakpodia (2021) provide assessment of budgeting and budgetary control to the SMEs in Cape Town, South Africa. However, this study intended not to provide the details of the administration of general economic program since as of today they cannot conduct gatherings due to certain issues that we are facing and also so that the future researchers can conduct program/orientation in the samples that in line with their study proposals. Moreover, there are limitations that hinders upon gathering data to provide findings of the study due to lack of collaboration between the researchers and the participants. Future research on online collaboration with participants as well as conducting programs online must have a transparent detail about the program being catered and there must be a larger number of participants to gather some strong proof/evidence which cannot be focused in one area but also in differentiating it with the other areas to find general findings. References Mamorena Lucia Matsoso; Nyathi, Moses; and Nakpodia, Franklin A. (2021). An Assessment of Budgeting and Budgetary Controls among SMEs: Evidence from a Developing Economy: Journal of Accounting in Emerging Economies; Bingley https://dx.doi.org/10.1108/JAEE-04-2020-0082
