The South African financial skills shortage: exploring solutions to bridge the gap

Abstract

Various studies have highlighted the financial skills shortage dilemma faced in South Africa. The need for financially skilled individuals keeps on rising and affects the growth of South Africa. Studies indicate that the financial skills shortage is due to the few number of graduates universities produce. The aim of this study is to bridge the gap between the number of graduates produced and the demand for financial skills in practice. This is therefore done by an investigation of the admission requirements used by the universities to predict the academic success in accountancy studies. The research is of a quantitative nature and the core required grade 12 subjects such as Accounting, Mathematics and English (including the required APS) are tested for correlations with the success of the accountancy studies. Quantitative procedures were used to analyse relationships between different variables. The findings were that the admission requirements may predict the success of the accountancy studies. Correlations were found between grade 12 subjects and the admission requirements against the success of the accountancy studies. The use of the Receiver Operating Characteristics curve helped with the optimum cut-off mark that could predict the success. The Receiver Operating Characteristic curves were for the factors that affect success such as the grade 12 Accounting, First Language, Mathematics, school average and the APS scores. It was also used for the university's Financial Accounting modules for all the accountancy programmes offered by the university. The study concluded by providing useful recommendations and by acknowledging the limitations of the study.