Controlling Functions in Micro and Small Enterprises

Abstract

Micro and small enterprises (MSEs) play a significant role in the Brazilian economy, accounting for approximately 30% of the national Gross Domestic Product (GDP). Despite their importance, many MSEs lack a formalized Controllership department, which may limit the efficiency of strategic management. This study aims to analyze how Controllership functions related to business strategy are performed in micro and small enterprises located in the city of Fortaleza (CE). To achieve this, a non-stratified convenience sampling survey was conducted, involving companies from the commerce, industry, and services sectors. The results reveal that most companies do not have a formal Controllership area but carry out essential functions such as accounting and tax activities, cash flow management, and costing of products, services, and merchandise. However, other functions—such as auditing of accounting and tax information, risk analysis, and preparation of managerial reports—are minimally implemented. Controllership functions are primarily centralized in the figure of the owner-manager, although some companies adopt decentralized models, valuing employee participation in strategy formulation. All surveyed companies outsource their accounting services, but some hire internal professionals to support accounting and tax tasks. As a contribution, this study highlights the importance of manager training and the adoption of more structured Controllership practices, which can enhance strategic decision-making and promote the sustainability and growth of MSEs.