Reference code: C052
ABSTRACT
This work looked at accounting practices and the performance of Small and Medium Scale enterprises in Rivers state with the aim of finding the relationships between record keeping, payroll accounting and budgeting practices and the effectiveness and efficiency of Small and Medium Scale enterprises. There were 6 research questions and 6 hypotheses. Structured questionnaires were the means of getting data. The Spearman rank correlation was used for analysis with the aid of the Statistical Package for Social Science (SPSS). The findings revealed that there is a weak positive relationship between the record keeping practices, payroll accounting practices and budgeting practices of SMEs in Rivers state and their effectiveness and efficiency. Also the study found that there were no significant relationships between the record keeping practices, payroll accounting practices and the budgeting practices of SMEs in Rivers state and their effectiveness and efficiency. The study, however, found significant relationship between the budgeting practices of SMEs in Rivers state and their efficiency. The study concluded that the accounting practices of SMEs in Rivers state are sub-standard and that this was one of the causes of their poor performances. Among others, it was recommended that SMEs should make efforts to adopt and maintain proper and adequate accounting systems.
The Nigerian economy is dominated by SMEs as they represent about 90% of the manufacturing/industrial sector in terms of number of enterprises and as revealed by studies made by the International Finance Corporation (IFC), about 96% of the businesses in Nigeria are SMEs (Nkwor-Azariah & Nkwor, 2015; Oyelaran-Oyeyinka, 2007). Nwoye (1991) cited by Onaolapo and Adegbite (2014) pointed out that SMEs are catalysts for Nigeria’s economic growth and development. He believed that with the many SMEs, Nigeria has great potentials for success and growth, sales of large volume of goods etc.
Job creation, strong entrepreneurial base, technological advancement and increased local raw materials usage are obvious consequence of SMEs’ development (Nkwor-Azariah & Nkwor, 2015).
However, for SMEs to play these crucial developmental roles, there is need for the adoption of accounting practices among them. For a business to be successful, it needs to make decisions that will enable it to stay solvent and to operate profitably (Meigs & Meigs, 1990) and accounting provides the basis for informed decision making. For instance, crucial decisions such as, pricing, costing, shutting down of under-performing branches or product lines, investment decisions, among others, cannot be made without proper accounting information. It is accounting that makes relevant information available to external parties like: lenders, prospective shareholders, creditors, government e.t.c. This information is necessary for their decision making. For instance, lenders will want know the present performance and solvency of a business before committing funds to it.
Also accounting is the language of business. There is therefore the need for every manager, investor and business decision maker to be familiar with accounting terms and concepts (Meigs & Meigs, 1990). ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
INTRODUCTION
............... The Small and Medium Scale Enterprises Development Agency of Nigeria and the National Bureau of Statistics (SMEDAN & NBS) in a collaborative study of Micro, Small and Medium Enterprises (MSMEs) in Nigeria carried out in 2013, defined SMEs as firms employing between 10 and 200 employees, and having the value of their assets between N5,000,000 and N500,000,000 (excluding land and building).The Nigerian economy is dominated by SMEs as they represent about 90% of the manufacturing/industrial sector in terms of number of enterprises and as revealed by studies made by the International Finance Corporation (IFC), about 96% of the businesses in Nigeria are SMEs (Nkwor-Azariah & Nkwor, 2015; Oyelaran-Oyeyinka, 2007). Nwoye (1991) cited by Onaolapo and Adegbite (2014) pointed out that SMEs are catalysts for Nigeria’s economic growth and development. He believed that with the many SMEs, Nigeria has great potentials for success and growth, sales of large volume of goods etc.
Job creation, strong entrepreneurial base, technological advancement and increased local raw materials usage are obvious consequence of SMEs’ development (Nkwor-Azariah & Nkwor, 2015).
However, for SMEs to play these crucial developmental roles, there is need for the adoption of accounting practices among them. For a business to be successful, it needs to make decisions that will enable it to stay solvent and to operate profitably (Meigs & Meigs, 1990) and accounting provides the basis for informed decision making. For instance, crucial decisions such as, pricing, costing, shutting down of under-performing branches or product lines, investment decisions, among others, cannot be made without proper accounting information. It is accounting that makes relevant information available to external parties like: lenders, prospective shareholders, creditors, government e.t.c. This information is necessary for their decision making. For instance, lenders will want know the present performance and solvency of a business before committing funds to it.
Also accounting is the language of business. There is therefore the need for every manager, investor and business decision maker to be familiar with accounting terms and concepts (Meigs & Meigs, 1990). ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the problem 3
1.3 Aim and objectives of the study 5
1.4 Research questions 6
1.5 Research hypotheses 7
1.6 Significance of the study 7
1.7 Scope of the study 8
1.8 Limitation of the study 10
1.9 Operational definition of terms 11
1.10 Organization of the study 13
References 14
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Theoretical framework 16
2.1.1 Decision usefulness theory 16
2.1.2 Positive Accounting theory (PAT) 17
2.2 Conceptual framework: Accounting practice 17
2.2.1 Record keeping 17
2.2.1 Budgeting 20
2.2.3 Payroll accounting 22
2.3 SMEs’ performance 23
2.3.1 Efficiency 24
2.3.2 Effectiveness 24
2.4 Empirical reviews 25
2.4.1 International studies 25
2.4.2 Local studies 27
2.5 Gap in knowledge/Summary 29
References 31
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design 35
3.2 Population of the study 36
3.3 Sample size determination and sampling technique 37
3.4 Data collection technique 38
3.5 Data analysis technique 39
3.6 Measurement of variables 39
3.7 Validity and reliability test 40
3.8 Instrument design and administration 40
References 42
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Demographic characteristics of respondents 43
4.2 Test of reliability 44
4.3 Answer to research questions and test of hypotheses 45
4.3.1 Research question one and hypothesis one 45
4.3.2 Research question two and hypothesis two 47
4.3.3 Research question three and hypothesis three 48
4.3.4 Research question four and hypothesis four 50
4.3.5 Research question five and hypothesis five 51
4.3.6 Research question six and hypothesis six 53
CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings 55
5.2 Conclusion 56
5.3 Recommendation 57
5.5 Suggestions for further research 57
Bibliography 59
Appendix 1: Research questionnaire 64
Reference code: c052
Reference code: c052
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76 Pages
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