Publication Information
Journal: NAU Journal of Technology and Vocational Education
Volume: 8 (2023)
EXTENT OF ADOPTION OF FINANCIAL REPORTINGANDANALYSIS PRACTICES BY OWNERS OF SMALL-SCALEBUSINESSESFOR BUSINESS GROWTH IN ANAMBRA STATE
Nnajiofor, F. N
Fn.nnajiofor@unizik.edu.ng Department of Technology and Vocational Education, Nnamdi Azikiwe University
Okorafor, Esther Chinwendu
Department of Technology and Vocational Education, Nnamdi Azikiwe University
To carry out this study, one research question was raised and two null hypotheses were testedat a0.05 level of significance. The study adopted a descriptive survey research design. The sampleconsisted of 500 small-scale business owners out of 1504 small-scale businesses in Anambra Statewhich were selected using purposive and convenience sampling techniques. The instrument for datacollection was a validated self-administered questionnaire. Cronbach's alpha formula was usedtodetermine the internal consistency of the questionnaire which yielded an a reliability coefficient of
0.84. The researchers administered the instrument with the help of five research assistants totherespondents. Mean and standard deviation were used to answer the research question and determinethe homogeneity or otherwise of the respondents while a t-test was used for testing the null
hypotheses. The findings of the study revealed that financial reporting and analysis practices werelowly adopted by small-scale business owners for business growth in Anambra State. Irrespective of
their gender and period of existence in the marketplace, small-scale business owners do not differ
significantly in their mean ratings on the extent they adopt financial reporting and analysis practices
for business growth. The study concluded that small-scale business owners in Anambra State will not
have detailed information about the financial strengths and weaknesses of their business empires as aresult of their under-utilization of financial reporting and analysis practices in the day-to-day runningof their business operations. It was recommended among others that small-scale business owners
should undertake technical seminars and workshops to improve their awareness and knowledge of
financial reporting and analysis practices. This would encourage them to make use of financial
reporting and analysis practices in their business to have a better view of the profitability of their
business in Anambra State.
0.84. The researchers administered the instrument with the help of five research assistants totherespondents. Mean and standard deviation were used to answer the research question and determinethe homogeneity or otherwise of the respondents while a t-test was used for testing the null
hypotheses. The findings of the study revealed that financial reporting and analysis practices werelowly adopted by small-scale business owners for business growth in Anambra State. Irrespective of
their gender and period of existence in the marketplace, small-scale business owners do not differ
significantly in their mean ratings on the extent they adopt financial reporting and analysis practices
for business growth. The study concluded that small-scale business owners in Anambra State will not
have detailed information about the financial strengths and weaknesses of their business empires as aresult of their under-utilization of financial reporting and analysis practices in the day-to-day runningof their business operations. It was recommended among others that small-scale business owners
should undertake technical seminars and workshops to improve their awareness and knowledge of
financial reporting and analysis practices. This would encourage them to make use of financial
reporting and analysis practices in their business to have a better view of the profitability of their
business in Anambra State.
Abanis, T., Sunday, A., Burani, A., & Eliabu, B. (2013). Financial management practices in small andmedium enterprises in selected districts in Western Uganda. Research Journal of Financeand Accounting, 4(2), 29-42
Abusomwan, R.E, Atu, O.G., & Omimi- Ejoor O.K.A. (2016). Financial reporting for small andmedium scale enterprises. Igbinedion University Journal of Accounting, 2, 11 - 39
Adnan A.A., Qubbaja I., & Talahmeh, A.H (2020). A challenge of accounting practices on small andmedium enterprises: A case study of Palestine. International Journal of MultidisciplinaryResearch and Analysis, 3(12), 310 - 317
Akumfi, C.A., Yeboah, S.K., Otoo, B., & Mensah J. (2019). The use of computerize base accountingsoftware by SMEs in Kumasi on financial reporting and performance. Unpublished bachelor
dissertation, College of Humanities and Social Sciences, Kwame Nkrumah Universityof
Science and Technology
Ali, M.S., Berhe, A.G., & Mihret, A.G. (2014). Accounting practices of small and mediumenterprises
in Tigray regional state: Evidence from authorized accountants. International Journal of
Current Research, 6(11), 10323-10328
Alsaaty, F., & Makhlouf, H. (2020). The rise and fall of small business enterprises. Open Journal of
Business and Management, 8, 1908-1916. Amoako, K.O., Marfo, E.O., Gyabaah, E.N., & Gyamfi, O. (2014). Accounting records keepingpractices of SMEs in Ghana: Evidence from Sunyani Municipality. British Journal of
Economics, Finance and Management Sciences, 9(1), 120 - 132
Brigham, E., & Ehrhardt, M. (2013). Financial management: Theory and practice. Mason, Ohio:
South Western Publishing, Etebefia, O.S., & Akinkumi, B.W. (2013). The contribution of small scale industries to the national
Economy. Standard Research Journal of Business Management, 1(2), 60-71
Fadahunsi, A. (2012). The growth of small businesses: Towards a research agenda. American Journal
of Economics and Business Administration, 4(1), 105-115. Gupta, P.D., Guha, S., & Krishnaswami, S.S. (2013). Firm growth and its determinants. Journal of
Innovation and Entrepreneurship, 2(1), 114 – 126
Ifekwem, N., & Adedamola, O. (2016). Survival strategies and sustainability of small andmediumenterprises in the Oshodi-Isolo Local Government Area of Lagos State.Acta Universitatis
Sapientiae: Economics and Business, 4(1), 103-118. Kutsaru, N. (2014). Analysis of the ef ects of accounting practices on small and mediumenterprise at
Meikles Park in Mutare. A Case of Meikles Park in Mutare. Unpublished bachelor
dissertation, Midlands State University, Zimbabwe
Lagos Business School (2021). Why SMEs fail and its impact on national development. https://www.lbs.edu.ng/lbsinsight/why-smes-fail-and-its-impact-on-national-development/
Nganda, J.W., Wanyonyi, K.W., & Kitili, E.M. (2014). Determinants of growth of small and mediumenterprises in Kakamega central sub-county, Kenya. Journal of Business AdministrationandManagement Sciences Research, 3(3), 22–31
Obeki, S.O., & Bila, B. (2018). Income statement preparation by small and mediumenterprises. Accounting & Taxation Review, 2(2), 43 – 56
Okoli, C.I., & Okeke, S.I. (2018). Extent owners of small and medium scale enterprises adopt suitablefinancial management practices for business success in Anambra State, Nigeria. International
Journal of Scientific and Research Publications, 8(6), 154 – 158
Rathnasiri, U.A.H.A. (2014). Financial reporting practices of small and medium enterprises (SMES)
In Sri Lanka. South East Asia Journal of Contemporary Business, Economics and Law, 4, 15- 23. Rodrigues, M., Franco, M., Silva, R., & Oliveira, C. (2021). Success factors of SMEs: Empirical
study guided by dynamic capabilities and resources-based view. Sustainability 2021, 13, 12301
Soyinka, K.A.M., Fagbayimu, M.O., Adegoroye, E., & Ogunmola, J.O. (2017). Decision usefulness
and financial reporting: The general public perspective. International Journal of AcademicResearch in Accounting, Finance and Management Sciences, 7(4), 160-168.
Tunji, S.T., Salome, M.N., Ifeanyi, O.P., & Abiodun, S.W. (2019). Accounting information systems
and small/medium scale enterprises performance. European Journal of Accounting, Auditingand Finance Research, 7(4), 61-73
Uddin R, Biswas, T, Ali, J., & Khatun, M.S. (2017). Accounting practices of small and mediumenterprises in Rangpur, Bangladesh. Journal of Business & Financial Af airs, 6(4), 1 – 7
Vincent, U. (2012, July 18). Anambra has highest number of SMEs in Nigeria – Aganga. VanguardNewspaper. Retrieved from https://www.vanguardngr.com/2012/07/anambra-has-highest- number-of-smes-in-nigeria-aganga/, on April 7, 2020
Vohra, P.S., & Dhillon, J. S. (2014). Best financial practices lead financial performance of SMEs. International Journal of Accounting and Financial Management Research, 4(3), 5-11. Yeboah, M.A. (2015). Determinants of SME growth: An empirical perspective of SMEs in the CapeCoast metropolis, Ghana. Journal of Business in Developing Nations, 14, 1–31.
Abusomwan, R.E, Atu, O.G., & Omimi- Ejoor O.K.A. (2016). Financial reporting for small andmedium scale enterprises. Igbinedion University Journal of Accounting, 2, 11 - 39
Adnan A.A., Qubbaja I., & Talahmeh, A.H (2020). A challenge of accounting practices on small andmedium enterprises: A case study of Palestine. International Journal of MultidisciplinaryResearch and Analysis, 3(12), 310 - 317
Akumfi, C.A., Yeboah, S.K., Otoo, B., & Mensah J. (2019). The use of computerize base accountingsoftware by SMEs in Kumasi on financial reporting and performance. Unpublished bachelor
dissertation, College of Humanities and Social Sciences, Kwame Nkrumah Universityof
Science and Technology
Ali, M.S., Berhe, A.G., & Mihret, A.G. (2014). Accounting practices of small and mediumenterprises
in Tigray regional state: Evidence from authorized accountants. International Journal of
Current Research, 6(11), 10323-10328
Alsaaty, F., & Makhlouf, H. (2020). The rise and fall of small business enterprises. Open Journal of
Business and Management, 8, 1908-1916. Amoako, K.O., Marfo, E.O., Gyabaah, E.N., & Gyamfi, O. (2014). Accounting records keepingpractices of SMEs in Ghana: Evidence from Sunyani Municipality. British Journal of
Economics, Finance and Management Sciences, 9(1), 120 - 132
Brigham, E., & Ehrhardt, M. (2013). Financial management: Theory and practice. Mason, Ohio:
South Western Publishing, Etebefia, O.S., & Akinkumi, B.W. (2013). The contribution of small scale industries to the national
Economy. Standard Research Journal of Business Management, 1(2), 60-71
Fadahunsi, A. (2012). The growth of small businesses: Towards a research agenda. American Journal
of Economics and Business Administration, 4(1), 105-115. Gupta, P.D., Guha, S., & Krishnaswami, S.S. (2013). Firm growth and its determinants. Journal of
Innovation and Entrepreneurship, 2(1), 114 – 126
Ifekwem, N., & Adedamola, O. (2016). Survival strategies and sustainability of small andmediumenterprises in the Oshodi-Isolo Local Government Area of Lagos State.Acta Universitatis
Sapientiae: Economics and Business, 4(1), 103-118. Kutsaru, N. (2014). Analysis of the ef ects of accounting practices on small and mediumenterprise at
Meikles Park in Mutare. A Case of Meikles Park in Mutare. Unpublished bachelor
dissertation, Midlands State University, Zimbabwe
Lagos Business School (2021). Why SMEs fail and its impact on national development. https://www.lbs.edu.ng/lbsinsight/why-smes-fail-and-its-impact-on-national-development/
Nganda, J.W., Wanyonyi, K.W., & Kitili, E.M. (2014). Determinants of growth of small and mediumenterprises in Kakamega central sub-county, Kenya. Journal of Business AdministrationandManagement Sciences Research, 3(3), 22–31
Obeki, S.O., & Bila, B. (2018). Income statement preparation by small and mediumenterprises. Accounting & Taxation Review, 2(2), 43 – 56
Okoli, C.I., & Okeke, S.I. (2018). Extent owners of small and medium scale enterprises adopt suitablefinancial management practices for business success in Anambra State, Nigeria. International
Journal of Scientific and Research Publications, 8(6), 154 – 158
Rathnasiri, U.A.H.A. (2014). Financial reporting practices of small and medium enterprises (SMES)
In Sri Lanka. South East Asia Journal of Contemporary Business, Economics and Law, 4, 15- 23. Rodrigues, M., Franco, M., Silva, R., & Oliveira, C. (2021). Success factors of SMEs: Empirical
study guided by dynamic capabilities and resources-based view. Sustainability 2021, 13, 12301
Soyinka, K.A.M., Fagbayimu, M.O., Adegoroye, E., & Ogunmola, J.O. (2017). Decision usefulness
and financial reporting: The general public perspective. International Journal of AcademicResearch in Accounting, Finance and Management Sciences, 7(4), 160-168.
Tunji, S.T., Salome, M.N., Ifeanyi, O.P., & Abiodun, S.W. (2019). Accounting information systems
and small/medium scale enterprises performance. European Journal of Accounting, Auditingand Finance Research, 7(4), 61-73
Uddin R, Biswas, T, Ali, J., & Khatun, M.S. (2017). Accounting practices of small and mediumenterprises in Rangpur, Bangladesh. Journal of Business & Financial Af airs, 6(4), 1 – 7
Vincent, U. (2012, July 18). Anambra has highest number of SMEs in Nigeria – Aganga. VanguardNewspaper. Retrieved from https://www.vanguardngr.com/2012/07/anambra-has-highest- number-of-smes-in-nigeria-aganga/, on April 7, 2020
Vohra, P.S., & Dhillon, J. S. (2014). Best financial practices lead financial performance of SMEs. International Journal of Accounting and Financial Management Research, 4(3), 5-11. Yeboah, M.A. (2015). Determinants of SME growth: An empirical perspective of SMEs in the CapeCoast metropolis, Ghana. Journal of Business in Developing Nations, 14, 1–31.