0704-883-0675     |      dataprojectng@gmail.com

A STUDY ON ACCOUNTING AND MANAGEMENT PROBLEMS OF SMALL SCALE INDUSTRIES IN NIGERIA

  • Project Research
  • 1-5 Chapters
  • Quantitative
  • Simple Percentage
  • Abstract : Available
  • Table of Content: Available
  • Reference Style: APA
  • Recommended for : Student Researchers
  • NGN 5000

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.  Identify the effect of poor planning to the management in small-scale business
  1. .Investigate how lack of proper accounting information and poor funding can lead to inefficiency  of small-scale business.
  2. Determine if problem of poor accounting system and management practices can lead to the dearth of small industries.

1.4 RESEARCH QUESTIONS

The following question will guide the research:

  1. What are the accounting and management problems facing small industries?
  2. What are the effect of poor accounting and management practices on small industries?
  3. Do you think  poor book keeping system and poor management practices can lead to inefficiency of small industries?
  4. Do you think  accounting and management problem can lead to tjhe dearth of small scale industries?

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.  Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)
  1. Time constraint: time factor pose another constraint since having to cope in this research which went simultaneously within the time schedule of other academic work making it impossible to undertake this study in large more representative skill.
  2. Negative attitude of respondent- The problem facing the researcher with regards to the respondents relates to the non-cooperation and uncompromising attitude of some respondents in giving out relevant information or facts. The researcher was able to get the relevant information at the end of the day.

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.





Related Project Materials

The impact of augmented reality in product visualization: A case study of an electronics retailer in Lagos, Nigeria.

Background of the study:
Augmented reality (AR) has emerged as a transformative technology in retail, significantly enhanci...

Read more
The Effect of Adolescent Sexual Health Education on STI Prevention in Sokoto State

Background of the Study

Adolescent sexual health education is a crucial component of public health inte...

Read more
The Role of Artificial Intelligence in Property Valuation and Pricing in Kaduna State

Background of the Study
Artificial Intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly in t...

Read more
Role of Accounting Information System in Enhancing Budgetary Control in Kaltungo Local Government Area

Background of the Study

Budgetary control is essential for ensuring the proper allocation and utilizati...

Read more
POLYGAMY AND ITS EFFECTS ON THE ACADEMIC PERFORMANCE OF PUPILS A CASE STUDY OF SOME SELECTED PRIMARY SCHOOL IN UGHELLI NORTH LOCAL GOVERNMENT AREA OF DELTA STATE

EXCERPT FROM THE STUDY

Academic performance on the other hand is being described as that behaviour exhibited by an...

Read more
An Assessment of Governmental Accounting on Rural Electrification Projects in Sokoto North LGA, Sokoto State

Background of the Study

Rural electrification is essential for socio-economic development, improving quality of life, and promoting indus...

Read more
An Assessment of Customer Loyalty Strategies and Their Impact on Business Growth: A Case Study of Mobile Phone Sellers in Kebbi State

Background of the Study
Customer loyalty is a critical component of business success, especially in the highly competitive...

Read more
An evaluation of international legal instruments on combating corruption: Evidence from the UN Convention against Corruption

Background of the Study
International legal instruments have increasingly become the cornerstone in the global fight agains...

Read more
An Assessment of Cardiovascular Risk Factors Among the Elderly in Kano State

Background of the Study

Cardiovascular diseases (CVDs) represent one of the leading causes of morbidity and mortality worldwide, with the...

Read more
An evaluation of risk management frameworks on bank stability: a case study of AB Microfinance Bank

Background of the Study
Risk management frameworks are essential to maintaining bank stability, particularly in environmen...

Read more
Share this page with your friends




whatsapp