An Evaluation Of The Effect Of Accounting Records On The Performance Of SME In Nigeria (A Study Of Selected SMEs In Lagos Metropolis)

An Evaluation Of The Effect Of Accounting Records On The Performance Of SME In Nigeria (A Study Of Selected SMEs In Lagos Metropolis)
Abstract
The research provides a theoretical and case study appraisal on the effect of accounting records on the performance of SME in Nigeria. It elucidates the nature and significance of accounting records and determines the levels of performance of SMEs. The research projects the nature, growing importance and contributions of SMEās to the development of the economy. It provides a case study appraisal of selected SMEās in Lagos metropolis as a measure to provide a practical perspective to the study.
Chapter One
Introduction
1.1 Background Of The Study
SMEās in Nigeria need the necessary financial back up to improve operations build capacity and grow. But these laudable objectives are besieged with the poor nature with which SMEās are operated and managed. Many SMEās lack accurate financial record of their business operations, the inability to make proper accounting, results to waste and loss of profit. Lack of basic accounting practices in most SMEās in Nigeria tends to compound their financial challenges. Most SMEās canāt access funds because banks and other financiers cannot readily verify their vibrancy and their access to quality projects (Strinwas, 2005) Stigliz and Wass (1981) expressed the view that small and medium scale firms with opportunities to invest in positive net present value project may block from doing so because of adverse selection and moral hazard problems. Such discriminations arise because the SMEās donāt have comprehensive accounting records to be utilized in proper project evaluation and budgeting. In relation to the above are improper investments in both current and fixed assets. The research therefore focuses on appraising the effect of accounting records on the performance of SMEās in Nigeria.
1.2 Statement Of The Problem
SMEās constitute a large proportion of business segment in Nigeria. Providing employment and playing important roles in the process of industrialization and sustainable economic growth. However the persistent inability of most SMEās to grow and expand business is critically affecting the laudable vision and plan of government to accelerate the rapid development of SME in Nigeria. Government has severally drawn policy measures through financial institutions like banks to provide the needed funding for SMEās. However, lack of basic accounting practice and information in most SMEās tends to compound to their financial challenges. Most SMEās canāt access funds because banks and other financiers cannot readily verify their vibrancy and their access to quality projects as a result of poor and lack of accounting information and records. Therefore the problem confronting this research is to evaluate the effect of accounting information or records on the performance of SME in Nigeria.
1.3 Research Objectives
- To determine the nature and significance of accounting record.
- To determine the nature and significance of SMEās in Nigeria.
- To determine the effect of accounting records on the performance of SMEās in Nigeria.
- To determine the effect of accounting records on the performance of selected SMEās in Lagos metropolis.
1.4 Research Questions
- What is accounting records?
- What is the nature and significance of SMEās in Nigeria?
- What is the effect of accounting records in the performance of SMEās in Nigeria?
- What is the effect of accounting records on the performance of selected SMEās in Lagos metropolis?
1.5 Statement Of Hypothesis
Hypothesis 1
- Ho the volume of SMEās in Lagos metropolis is low
- Hi the volume of SMEās in Lagos metropolis is high
Hypothesis 2
- Ho the performance of SMEās in Lagos metropolis is low.
- Hi the performance of SMEās in Lagos Metropolis is high
Hypothesis 3
- Ho the effect of accounting records on the performance of SMEās in Lagos metropolis is low.
- Hi the effect of accounting records on the performance of SMEās in Lagos metropolis is high.
1.6 Significance Of The Study
- The research shall provide a detail appraisal on the nature and significance of accounting information.
- It shall appraise the effect of accounting records on the performance of SMEās in Nigeria.
- The research shall elucidate the effects of accounting records on the performance of selected SMEās Lagos metropolis.
1.7 Scope Of The Study
The research shall evaluate the effect of accounting records on the performance of SMEās in Nigeria.
1.8 Definition Of Terms
SME:
Small and medium-scale enterprise
SME Defined:
By definition in Nigeria small and medium industries equity investment scheme (SMIEIS) define
SMEās:
As those enterprise with a total capital employed not less than N1.5 million, but not exceeding N200 million including working capital, but exceeding cost of land and or with a stall strength of not less than 10 and not more than 300.
Accounting Information:
Accounting information is the result of business understandings stated in financial terms. Improved accounting information enhances the quality of financial reporting in SMEās. It is the satisfactory aggregation of business activities achieved in forms of records.
Objectives:
Objectives specifies what the firm intends to achieve for given period of time objectives are the ends of the business Ansoll (1985) identifies proximate objectives which is concerned with the short term performance of the business, proxy objectives which is concerned with the long term performance of the business and flexibility objective which is concerned with safe guarding against risk and uncertainty.
An Evaluation Of The Effect Of Accounting Records On The Performance Of SME In Nigeria (A Study Of Selected SMEs In Lagos Metropolis)
The complete material will be sent to you in just 2 steps.
Quick & Simple…
Make payment of ā¦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:
![]() | Account No.: 0811003731 |
Name: Samphina Academy | |
Account Type: Current |
Or Click Here to pay with Debit Card
FOR CLIENTS OUTSIDE NIGERIA: |
Click Here to pay with Debit Card ($15) |
GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas OsabuteyĀ |
Send the following details through Text Message or WhatsApp Messenger | +234-8143831497
- Payment DetailsĀ
- Email AddressĀ
- An Evaluation Of The Effect Of Accounting Records On The Performance Of SME In Nigeria (A Study Of Selected SMEs In Lagos Metropolis)
The complete material will be sent to your email address after receiving your payment information | T & C Apply
You may also like:
ā ļø Need a different topic? Perform a quick search
Disclaimer
This research material “An Evaluation Of The Effect Of Accounting Records On The Performance Of SME In Nigeria (A Study Of Selected SMEs In Lagos Metropolis)” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.
The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.
samphina.com.ng is only providing this material “An Evaluation Of The Effect Of Accounting Records On The Performance Of SME In Nigeria (A Study Of Selected SMEs In Lagos Metropolis)” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.