Original Research

Assessing the financial implications of quality management system accreditation on small training providers in KwaZulu-Natal

Robert W.D. Zondo
South African Journal of Economic and Management Sciences | Vol 21, No 1 | a1728 | DOI: https://doi.org/10.4102/sajems.v21i1.1728 | © 2018 Robert W.D. Zondo | This work is licensed under CC Attribution 4.0
Submitted: 14 December 2016 | Published: 10 April 2018

About the author(s)

Robert W.D. Zondo, Faculty of Management Sciences, Durban University of Technology, South Africa


Background: A quality management system (QMS) in education and training is designed in accordance with industry quality models of ISO 9001. Its techniques ensure quality in skills development. However, training providers incur significant costs to obtain QMS accreditation. Therefore, the discourse on the economic effect of QMS accreditation in small training providers is crucial.


Aim: This paper investigates the influence of QMS accreditation on the financial performance of small training providers in KwaZulu-Natal (KZN).


Setting: The South African Qualification Authority (SAQA) is a statutory body, regulated in terms of the National Qualification Framework (NQF) Act No. 67 of 2008 to oversee the development and implementation of the NQF. They are responsible for accrediting 21 sector-based Education and Training Quality Authorities (ETQAs) for the purpose of monitoring and auditing training achievements in terms of the national standards and qualifications.


Methods: For this study to achieve its objectives, the ETQAs belonging to 12 different Sector Education and Training Authorities (SETAs) provided the sample frame of accredited training providers in KZN. The SETAs are responsible for administering education and training within their industrial sectors. Of the 89 small training providers, 81 participated in the study. Descriptive and correlation analysis were used to test the two objectives. That is, to examine whether the management and marketing practices of QMS accredited small training providers improve their financial performance.


Results: The study indicates that there is no statistical significant relationship between the management and marketing practices of QMS accredited small training providers and their financial performances. This shows that small training providers do not incorporate financial measures during QMS implementation. The accounting departments are not covered in the QMS strategy.


Conclusion: Small training providers should take advantage of QMS accreditation for their business’s financial performance. They should incorporate financial indicators during QMS implementation and measure QMS’s economic effects on an ongoing basis. The original value of this paper is in its approach in uncovering the strengths and weaknesses of QMS accreditation in the financial performances of accredited small training providers in KZN.


accreditation; financial performance; KwaZulu-Natal; quality management system; small training providers


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