Browsing by Author "Nketsia, Rufus Eshun"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Financial management practices of micro, small and medium Enterprises in the Obuasi Municipality.
    (KNUST, 2016-08) Nketsia, Rufus Eshun
    This study was done to assess the of financial management practices in Micro, Small and Medium Enterprises (MSME’s) in the Obuasi Municipality. The objectives of the study were; to determine the extent of financial management employed by SMEs as to these dimensions: to evaluate how MSME’s acquire their financial resources, to examine how MSME’s anticipate their financial needs, to identify how MSME’s allocate funds in their business, and to explore the challenges faced by MSME’s in financial management practices. Questionnaires were appropriated to participants and were the ones utilized for examination. The study used retrospective and prospective designs together with descriptive design. The study notes that the most practiced financial management practices by MSME’s in Obuasi Municipal are periodical budget estimations, activity-based budgeting and financial analysis. This includes computation of financial ratios and comparing their values with other business. The study notes that some important financial management practices are not undertaken by the SMEs such as drawing of financial statements on regular basis. The study reports that MSME’s operating in the Obuasi Municipality perform some monitoring and control activities which include recording of transactions of the businesses. The study brought up new knowledge on how MSME’s apply financial management practices and the weaknesses that were found out in their current operations hindering their efficiency in terms of profitability and business growth. The recommendations from the study included; the Ministry of Finance and Economic Planning, Bank of Ghana should provide a favourable platform for MSME’s to access financing that can enable them to run their businesses at a reasonable cost of financing and sensitize also, owners of MSME’s on the relevance of bookkeeping, financial reporting and analysis. The study brought up new knowledge on how MSME’s apply financial management practices and the weaknesses that were found out in their current operations hindering their efficiency in terms of profitability and business growth.