Management Accounting Practices and the Performance of Small- Scale Business in Nigeria: A Study of Small-Scale Business in Kogi State

Onimisi; Iziegbe Blessing; Inyada; Sunday Joseph; Obafemi Tunde Olutokunbo

doi:10.56201/jafm.vol.12.no2.2026.pg353.367

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Management Accounting Practices and the Performance of Small- Scale Business in Nigeria: A Study of Small-Scale Business in Kogi State

Onimisi, Iziegbe Blessing, Inyada, Sunday Joseph, Obafemi Tunde Olutokunbo

Abstract

Small-scale businesses in Kogi State, Nigeria, play a crucial role in the local economy, contributing significantly to employment and economic growth. However, many of these businesses struggle due to inadequate financial management practices, which impede their growth and sustainability. This study aimed to examine how management accounting practices specifically strategic planning (SP), decision support (DS), and internal control and risk management effect the performance of SMEs in Kogi State, with a focus on customer satisfaction as the dependent variable. The study used a survey research design, distributing structured questionnaires to 72 active SMEs in Kogi State. A total of 40 valid responses were analyzed using a five-point Likert scale and regression models. The findings revealed that all three management accounting practices (SP, DS, and ICARM) had a statistically significant impact on SME performance. Specifically, SP showed a strong positive effect on performance (p-value < 0.05), DS also significantly influenced performance (p-value = 0.0201), while ICARM, despite a smaller effect, remained statistically significant (p-value = 0.0014). These results suggest that SMEs in Kogi State that adopt and implement management accounting practices are more likely to improve customer satisfaction and, by extension, their overall performance. Based on these findings, several recommendations are made for improving SME performance in Kogi State. First, SMEs should enhance their awareness and training in strategic planning to better navigate market challenges. Second, promoting the adoption of decision support tools, such as budgeting and financial forecasting, can help business owners make more informed decisions. Finally, SMEs should prioritize strengthening their internal control and risk management systems to ensure operational stability and safeguard their assets. Implementing these practices will not only JAFM improve business performance but also contribute to the long-term sustainability and growth of small businesses in the region.

References

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Management Accounting Practices and the Performance of Small- Scale Business in Nigeria: A Study of Small-Scale Business in Kogi State

Abstract

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