Assessing the financial management practices of some selected SMES in Kumasi metropolis.
No Thumbnail Available
Date
2016-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
KNUST
Abstract
Small and Medium-sized Entities (SMEs) are very important to the economic growth and development of a nation. Unfortunately, a large number of SMEs in Ghana do not survive for a long period. This study believes that prudent financial management practices can help SMEs become profitable and for that matter stay in business for a long period of time. The main objective of the study is to assess the financial management practices of some selected SMEs in the Kumasi Metropolis. The study used a sample of sixty (60) SMEs operating in the Kumasi Metropolis. The study was a cross sectional survey which used primary data predominantly. The study employs a purposive random sampling technique in selecting the sample size. The findings indicate that financial management practices such as working capital management, financing, investing, financial reporting and Accounting Information Systems (AIS) are strictly adhered to the sixty SMES selected. The results further indicate that one major challenge militating against the financial management of these selected SMEs in the metropolis is the lack of entrepreneurial and managerial skills representing a higher score of (91.67%) were agreed by the respondents. Increasing financial responsibility is placed on these SMES who have little or no skills in financial management. Lack of credit facilities and long term loans representing (65.00%) was the second challenge the majority of the respondents cited as a major challenge affecting the financial management of their businesses. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings to appreciate the importance of financial management practices to the sustainability of SMEs in Ghana.
Description
A Thesis Submitted To The School Of Business In Partial Fulfilment Of The Requirements For The Degree Of Master Of Science In Accounting And Finance.