BACKGROUND OF THE STUDY
Small and medium businesses are commonly recognized as the bedrock of long-term economic development. According to UNDP (1974), developing countries, including Nigeria, have shown increased interest in the promotion of small and medium scale enterprises since the 1970s for three main reasons: the failure of previous industrial policies to generate efficient self-sustaining growth; increased emphasis on self-reliance; and recognition that dynamic and growing SMIs can contribute (Zhu, 2015). Among the objectives are effective resource use, employment creation, mobilization of domestic savings for investment, promotion, expansion, and development of indigenous entrepreneurship and technology, and income distribution. As a result, the government created programs to aid SMEs in the areas of financing, extension and advisory services, training, and infrastructure supply in order to assist them in achieving these objectives. The entire potential of SMIs in the developmental process, however, has yet to be achieved due to a variety of restrictions (Ifedi, 2005).
Small-scale industries are frequently founded as a result of family businesses. The majority of family businesses are run by family members. Non-family members can, nevertheless, contribute to the workforce. As a result, the company environment varies depending on the management style and the culture that the family has passed down through the centuries (Peter and Buhalis 2004). The extent to which these business units can contribute to Nigeria's growth and development is determined by their operational performance. The fact that the establishment and application of controls by the owners or management, in addition to the systematic record keeping of business transactions, is underlying the success of a business enterprise, which keeps the owner well-informed about the performance of the business at the end of the period. 2011 (Mbroh, John, and Attom).
Accounting, often known as accounting, is the measurement, processing, and transmission of financial and non-financial data concerning organizations and enterprises (Zhang, 2013). Financial statements, such as the income statement and the statement of financial status, are frequently used to show this information. Any financial ratios taken from these financial statements are also included. Accounting systems are in charge of evaluating and monitoring a company's financial position, preparing tax records, and supplying data to assist a variety of other organizational activities such as production, marketing, human resource management, and strategic planning (Zhang, 2013). It will be extremely difficult for SMEs to assess performance, identify customer and supplier account balances, and estimate future performance without such a system. The major goal of accounting is to gather and record data and information about events that have a financial influence on businesses, as well as to maintain, process, and communicate that data to internal and external stakeholders for proper decision-making (Stefanou, 2006). Management, on the other hand, is the organization and administration of tasks in order to achieve a goal. Setting the organization's strategy and organizing employee efforts to achieve these objectives through the use of available resources are examples of administrative activities.
Small and medium scale industries, according to Aremu and Adeyemi (2011), hardly give serious thought to the process of sound accounting and management except for statutory demands, while also noting that the inadequacy and ineffectiveness of accounting processes management practices have been responsible for the untimely collapse of most small scale industries. As a result, the purpose of this study is to look at the accounting and management issues that small businesses face.
1.2 STATEMENT OF THE PROBLEM
Small and medium-sized businesses are believed to be the engine that propels the Nigerian economy forward, and every major company began as a small one (Zhang, 2013). Despite the relevance and vital nature of SMEs in Nigeria, many SMEs have not given much attention to accounting information and bookkeeping in connection to their business transactions, despite the necessity of accounting information and bookkeeping in the success of SMEs. This might be due to the owners' or managers' lack of understanding of bookkeeping and management standards.
The extent of non-recognition of the importance of accounting information to the continuous survival and growth of SMEs is difficult to determine (Zhu, 2015). Owners with a low educational background and managers who are inexperienced have resulted in the creation of incorrect accounting or financial statements, which has influenced managerial decision-making. As a result, if small businesses are to prosper, owners must pay attention to correct accounting and management standards (Zhang, 2013). As a result, the purpose of this research is to look at the accounting and management issues that small businesses face.
1.3 OBJECTIVE OF THE STUDY
The main focus of this study is to examine accounting and management problems of small industries. Specifically it will
1.4 RESEARCH QUESTIONS
The following question will guide the research:
1.5 SIGNIFICANCE OF THE STUDY
The study will raise awareness among management of firms or various businesses, as well as other managers, of the importance of keeping appropriate, complete, and reliable records using accounting information systems for purposes such as quick, correct decision making, and effective planning and control of their business's activities. It will educate managers, who are the organization's most important employees, on the need of improving managing practices in order to increase corporate efficiency.
Employees and customers will be able to analyze the company's capacity to manufacture items and provide services on a continual basis by employing correct bookkeeping, which will allow for proper management decision making. The government will gain from the research in terms of tax collection and corporate activity control. Finally, the study will contribute to the body of existing literature on the subject, making it useful to future researchers.
1.6 SCOPE OF THE STUDY
The scope of this study will cover accounting and management problems of small industries. The study Is delimited a selected small Industries using Mazem’s Bakery Industries In Ezinihitte Local Government Area as Case Study.
1.7 LIMITATION OF STUDY
During the course of the study challenges encountered were exclusively but not delimited to the following numerous. These are
1.8 DEFINITION OF TERMS
Management: Management is the administration of an organization, whether it is a business, a non-profit organization, or government body.
Accounting: Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.
Small Industries: Small Scale Industries (SSI) are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale.
EXCERPT FROM THE STUDY
Effective teaching of introductory/ basic technology require competencies. Competencies based on...
ABSTRACT
The main purpose of this research work was to examine the Federal Character Principle and Quota System in Niger...
ABSTRACT
This project is on the design and development of portable and reliable fingerprint based student attendance mon...
ASBTRACT
This project investigates “The Impacts of Pricing in Marketing of Coke Drinks in Enugu S...
Abstract
This research project examined the Federal Character Principle and its implication on Manpower Utilization with...
ABSTRACT
The capital market is one the compartment of financial system that promote savings and investment in an economy, by providing th...
ABSTRACT
The project dealt on the production of yam flour from yam chips. The yams were peeled and washed, 100grams samples coded sample...
Background To The Study
Based in part on the development of modern communications and transportation technologies, the r...
ABSTRACT
In this study we examined electoral processes and security challenges in Nigeria. We took special reference to...
ABSTRACT
This study was carried out on the impact of POS on promoting entrepreneurship in Nigeria using businesses...