The Influence of Financial Record Keeping on Small Scale Farmers Profitability: A Case of Kilolo District Council

Abstract

This paper assessed the Influence of Financial Records Keeping on Small Scale Farmers’ Profitability from Kilolo District. Specifically, the study assessed the influence of frequency of record-keeping; number of financial records kept, and financial literacy training on the financial record-keeping practices on profitability of small-scale farmers. A quantitative research approach and cross-sectional design were used. Multiple regression model was used in data analysis. The population of the study was all small scale farmers in four wards namely; Kising’a; Ukwega; Isagwa and Lulanzi of the Kilolo district. Data were collected from the optimal sample size of 165 mall scale maize and beans farmers. Findings for the first objective showed that, 36.8% of the farmers keep financial records while the remaining 63.2% do not keep financial records. More results showed that, farmers who keep financial records likely have a more organized approach to managing their finances. Also, the finding show that, frequency of record-keeping is significant at 1% (p-value =0.000) and a one-unit increase in the frequency of record-keeping is associated with an increase of approximately 10% profitability. Also, number of financial records kept was found significant at 5% (p_value =0.02), one-unit increase in the number of financial records kept is associated with an increase of approximately 19.2% profitability. Finding on financial literacy training shows a significant at 1% (p_value =0.002), holding other variables constant, a one-unit increase in financial training is associated with an increase of approximately 9.5% profitability. The study concludes that, financial training, number of financial record kept and frequency of record-keeping positively associated with the profitability of small-scale farmers. By maintaining more regular and systematic financial records, these farmers are able to enhance their

Keywords

References