IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 7 NO. 1 2021

---

An Analysis of Financial Management in the Success of Small Scale Business

Alhaji Kawugana PhD & Abdallah Ahmedmubi

---

Abstract

This study analyzed financial management approach in the success of small scale business. The purpose of this study is to carry a study on a financial management system and the survival of small scale industries in Nigeria with particular reference to one among the leading printing press situated in north eastern part of Nigeria known as Ramadan Printing Press, Bauchi State. The survey research design was adopted and Instrument of data collection are questionnaire and personal interview which formed the source of primary data and secondary sources of data were also used. 40 questionnaires were distributed to the staff of the company and only 35 were filled and returned. Tables and simple percentages were used to analyze the data. The statistical tool used to test hypotheses was chi-square (X2). The major finding of the research is that the use of poor accounting and internal control system has negative impact on the survival of small scale industries in Nigeria. Based on the finding, the study concludes that it is clear that financial management approaches is the main factor in the success of small scale business. , Based on the conclusion the study recommends that there should be proper financial management concerned with planning and controlling of the firm’s financial resources and there is no way a business can succeed without planning and controlling its financial resources.

keywords:

Financial Management, Small Scale, Business, Success, Analysis

---

References:

Aremu, M.A.& Adeyemi, S.L. (2011). Small and medium scale enterprises as a survival
strategy for employment generation in Nigeria. Journal of Sustainable
Development 4(1),200-206.
Aruwa, S.A.S (2006), “The Business Entrepreneur”, Entrepreneurship Academy publishing,
Kaduna.
Ang, J. S, 1992, On the theory of finance for privately held firms. The Journal of Small
Business Finance, 1(3), p. 185 – 203.
Ayyagari,Beck&Demirguc-Kunt 2003, Small and Medium Enterprises across the Globe: A
New Database USA-Newyork publishers. Baldacchino, G, 1999, An Exceptional
Success: The Case Study of an Export Oriented, Locally Owned, Small Scale
Manufacturing Firm in a Small Island Country, Journal of Pacific Studies, 23(1).
Barton, S. L. Maththews, C. H, 1989. Small firm financing: implications from a strategic
management perspective, Journal of Small Business Management, January, p. 1 – 7.
Basil, A.N.O, 2005, Small and Medium Enterprises (SMEs) in Nigeria: Problems and
Prospects. Unpublished PhD Dissertation St. Clements University, Nigeria.
Berger, A.N., and Udell, G.F, 1998, The Economics of Small Business Finance: The Roles of
Private Equity and Debt Markets in the Financial Growth Cycle. Working Paper
Series Social Science Development Network.
Bolton J.E ,1971, Report of The Committee of Inquiry on Small Firms, HMSO, London.
Bolum A.C.H. Financial Management Accounting, Enboneje Press, Nigeria
Bracker, J.S., Keats, B.W., and Pearson, J.N, 2006, Planning and Financial Performance
Among Small Firms in a Growth Industry. Strategic Management Journal, 9(6).
Brigham, E. F, 1995, Fundamental of Financial Management, 7th edition, Dryden Press,
Forth Worth.
D’Amboise, G. Gasse, Y, 1980, Performance in small firms and utilization of formal
management techniques, Proceeding of the Joint National meeting TIMS/ORSA,
Washington.

Datta, D, 2010, Small Business Finance: Implications of Delay in Formal Sector.
International Journal of Economics and Finance, 2(4).
DeThomas, A. R. and Fredenberger, W. B, 1985, Accounting needs of very small business,
CPA Journal Farhoodmand, F. and Hryck, G. P, 1985, The feasibility of computers in
the small business environment, American Journal of Small Business, 9(4), p. 15 – 22.

Dinox G.R. (2006). Practical Approach to Financial Management, Third Edition, Financial
Training Publication Ltd, Britain.

Evgene H.H. (2010) Introduction to Modern Business, Practice Hall International, INC
London.

Ganesan, S, 1982, Management of Small Construction Firms: A Case Study of Sri
Lanka, Singapore, Hong Kong, Thailand, the Philippines and Japan. Japan:
Asian ProductivityOrganization.

Grablowsky, B. J and Burns, W. L, 1980, The applications of capital allocation techniques by
small business. Journal of Small Business, 18(3), p.50 – 58.

Grablowsky, B. J, 1978, Management of cash position. Journal of Small Business
Management, 22(3), p. 59 – 65.I. P. (2008)

Joberg Publishers Johanesburg. Block, S, 1997, Capital budgeting techniques used by small
business firms in the 1990s. The Engineering Economist, 42(2), p. 289 – 302.

Journal Hutchinson, P. and Mengersen, K, 1993, The financial characteristics of dynamic
small enterprises: predicting success and failure, of Enterprising 41 Culture.

M. Burns, R. and Walker, J, 1991, A survey of working capital policy among small
manufacturing firms. The Journal of Small Business Finance, 1(1), p. 61 – 74.

Cooley, P. L. Pullen, R. J, 1979, Small business cash management practices.American
Journal of Small Business, 4(2), p. 1 – 11.

Michael H.N. (2009) Business Today, 4th Edition, Guensey Press Co. Ltd London.

Mili A.H. (2011) Auditing on Instructional Manual for Accounting Student 4th Edition,
(Inernes) Ltd.

Oshoghen T.A. (2009) Small Scale Business Management, Longman Group Ltd, Nigeria.
USA: New York. Retrieved February 20, 2012 Berry A, Von Blottnitz M, Cassim R,

Kesper A, Rajaratriam B, Van Seventer DE, 2002, The Economics of SMMES in
South Africa.

Osotimehin, K.O.; Jegede, C.A ,Akinlabi, B. H and Olajide, O.T. (2012) An Evaluation of the
Challenges and Prospects of Micro and Small Scale Enterprises Development in
Nigeria.American International Journal of Contemporary Research.Vol. 2(4).

Oyelaran, O, B. “SME: Issues, Challenges and Prospects” Financial System Strategy (FSS)
2020 International Conference; Transcorp Hilton Hotel Abuja, 2007

Rajesh, K. S., Suresh, K. G., &Deshmukh, S. G. (2008). Strategy development by SMEs for
competitiveness: a review. Benchmarking: An International Journal, 15(5): 525- 547

DOWNLOAD PDF

---

Back