SMALL AND MEDIUM ENTERPRISE OWNERS ADOPTION OF SUSTAINABLE FINANCIAL MANAGEMENT PRACTICES FOR DEVELOPMENT IN ANAMBRA STATE
Abstract
The need to ensure the success of Small and Medium Enterprises (SMEs) for sustainability and national development necessitated this study. The study ascertained theextent owners of Small and Medium Scale enterprises adopt financial management practices in Anambra State. Descriptive survey research design was adopted. The population comprised 2502 owners of small and medium scale enterprises who were registered with the Anambra State Ministry of Commerce, Industry and
Technology. A validated structured questionnaire with a reliability coefficient index value of 0.84 using Cronbach alpha was used to collect data. Mean rating and standard deviation were used to analyze data collected while Analysis of Variance (ANOVA) was used in testing the null hypothesis at 0.05 level of significance. The findings of the study revealed among others that financial management practices as establishing financial plans for specified areas of fund allocation and verifying recorded accounting figures regularly were adapted to a low extent by the owners of SMEs in Anambra State. It was also discovered that years of business experience of the owners did not significantly affect their mean ratings on the extent their adoption of the financial management practices in their businesses. It was concluded that the extent of adoption of financial management practices among the owners of SMEs in Anambra State was low. It was recommended among others that entrepreneurial bodies such as the National Association of Small and Medium Enterprises (NASME) should organize their members coherently with a view to guiding them through dissemination of relevant and up-to-date information on the identified financial management practices needed for business success.
KEYWORDS: SME Owners, Adoption, Financial Management Practices, Sustainability and National development
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