Edward Rankhumise and Portia Pearl Siyanda Sifolo
Abstract
Detective internal controls usually foster compliance among small businesses and are the second line of defence to identify errors, theft, or omission that the preventive controls failed to block. They provide a holistic technical view that safeguards and protects the assets of small businesses. However, failure to isolate the unique risks facing small businesses negatively affects the detective internal controls and is often neglected. A qualitative method was adopted through semi-structured interviews among 12 small business entrepreneurs in Mpumalanga, South Africa. MAXQDA 2022 was used to analyse data. The results revealed that small businesses were reluctant to participate due to their concerns about the information being gathered. Moreover, small business entrepreneurs indicated a lack of financial readiness and technical and conceptual business management skills as prohibitors to implementing internal detective controls. Ineffective detective internal control activities lead to weak documentation, noncompliance, lack of skilled employees and volatile employee dynamics, inconsistent use of bank accounts, inadequate information systems and software and business continuity issues. The emergence of trends and resilience strategies adopted by small business entrepreneurs during the pandemic provides a glimpse of what futuristic small business entrepreneurship looks like.