ASSESSING BOOK KEEPING PRACTICES OF small AND medium scale enterprises
The economy of Nigeria is characterized by a large number of micro enterprises, with small and medium enterprises filling in the gaps in between (SMEs). The fact that most SMEs are able to be established with relatively little difficulty is one of their most distinguishing characteristics.
This is due to the fact that their requirements in terms of capital, technology, management, and even utilities are not as stringent as those of large enterprises. Therefore, the small enterprise sector is one of the leading employers in Nigeria (second only to peasant agriculture), and it has been recognized as a significant sector in the creation of employment opportunities, the generation of income, the alleviation of poverty, and the establishment of a base for the development of industrial production.
It is estimated that there are more than 30 million businesses operating in the sector, providing jobs for between 15 and 16 million individuals. Poor record keeping is recognized as a constraint that is preventing the expansion of the private sector in Nigeria, despite the enormous potential that this sector possesses.
Because there is a lack of financial information, businesses are unable to monitor their day-to-day operations, and banks are hesitant to provide loans to smaller businesses. Therefore, the purpose of this study is to investigate whether or not small and medium-sized enterprises (SMEs) engage in bookkeeping and the extent to which bookkeeping contributes to the expansion of SMEs in the city of Uyo, which is located in the state of Akwa Ibom in Nigeria.
In its analysis, the study took into account a total population of 450 people, made up of SMEs, 15 banks, and the SMEDAN office located in the Local government Area. A sample size of 136 people was determined for the research by using a straightforward random sampling method on this total number of people.
The chi-square test at a level of significance of 0.05 was utilized in the analysis that was performed using the software programs SPSS and E-views. According to the findings of the study, 80.8% of SMEs were engaged in bookkeeping, and the manual system was utilized by the majority of them.
The recommendations, on the other hand, stated that SMEDAN should be given more power and resources by the government in order to be able to provide assistance services in the field of effective training programs for small and medium-sized business operators.
One more thing that came out of the research was the discovery that good bookkeeping practices help improve SMEs. SME owners and operators need to be made aware of the importance of keeping accurate books of records, so there should also be extensive publicity done in the native language and disseminated through mainstream media.
ASSESSING BOOK KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES