FINANCIAL MANAGEMENT PRACTICES AND ECONOMIC SUSTAINABILITY OF MICRO AND SMALL-SCALE ENTERPRISES IN BENUE STATE, NIGERIA

Abstract

This study assessed the effect of financial management practices on sustainability of micro and small-scale enterprises (MSEs) in Gboko, Benue State – Nigeria. Business owners and operators of MSEs, and accountants in the study area constituted the population of the study. Using purposive and convenience techniques, the study sampled the opinions of 286 representative population elements, which were collected through structured questionnaires. For data analysis, the study used descriptive (mean, standard deviation and percentages) and inferential (multiple regression) statistics. Findings were that capital budgeting; financing; budgetary control, earnings management and financial reporting practices had significant effect on sustainability of MSEs in Benue State. It was thus, concluded that financial management practices have moderate effect on overall sustainability of MSEs in Benue State. Recommendation was made for operators of MSEs and relevant government agencies in Benue State to take all issues of financial management seriously. To begin with, government should assist group MSEs with professional financial management extension services to cover budgeting, budgetary control and preparation of annual financial statements.