Adequate Accounting Records and the Growth of Small Scale Enterprises in Delta State, Nigeria

Abstract

This study is carried out to investigate the imperatives of proper
accounting for growth of small scale businesses in Delta State,
Nigeria. A set of structured questionnaire was used as the instrument
for data collection and administered randomly to 45 small scale
enterprises in the study area. Data collected were presented in tables
and analysed using simple percentage. Hypotheses were tested using
the Pearson Product Moment Correlation Co-efficient and t-test at
0.05% level of significance. The results show among others that
positive and significant relationship exists between adequate
accounting records and the growth of small scale businesses. Hence,
it is true that accounting records assist managers of small scale
enterprises in making decisions that affect them. It is therefore
concluded that keeping of adequate accounting records is
imperative for the development and growth of small scale businesses
in Nigeria. Therefore, the employment of qualified accountants to
man the accounts section, creating a ministry that will be
responsible for small scale enterprises and embarking on
enlightenment programmes in form of seminars and workshops for
small business entrepreneurs are recommended among others. Small
scale entrepreneurs should be made to prepare and submit their
annual accounts such as profit and loss accounts and the balance
sheet which will show the financial position at the end of the
financial year.