Background of the Study
Record-keeping is a fundamental aspect of financial management for small and medium-sized enterprises (SMEs). Accurate and consistent records help businesses track their financial performance, meet regulatory requirements, and make informed decisions. However, in many developing economies, including Nigeria, record-keeping practices among SMEs remain suboptimal. In Onitsha Market, a major trading hub in Anambra State, many traders operate informally, relying on manual or non-standardized methods of record-keeping (Iwuoha & Emefiele, 2024).
Despite the availability of digital tools and government initiatives aimed at improving SME operations, most traders in Onitsha Market fail to adopt proper record-keeping practices. This has resulted in inefficiencies, financial losses, and challenges in accessing credit facilities. Research indicates that the lack of proper records is a key factor in the failure of many SMEs in Nigeria (Okeke & Uche, 2023). Addressing this issue is crucial for enhancing the sustainability and growth of businesses in Onitsha Market.
Statement of the Problem
The absence of effective record-keeping practices among SMEs in Onitsha Market has hindered their financial performance and long-term growth. Many traders struggle to monitor cash flows, calculate profits, or prepare accurate tax returns. This has also made it difficult for them to access credit facilities, as lenders often require verifiable financial records. Despite the critical role of record-keeping, there is limited empirical research on the practices of traders in Onitsha Market, leaving a significant gap in understanding and addressing their challenges.
Objectives of the Study
To assess the current record-keeping practices among traders in Onitsha Market.
To identify challenges faced by traders in maintaining accurate financial records.
To recommend strategies for improving record-keeping practices among traders.
Research Questions
What are the current record-keeping practices among traders in Onitsha Market?
What challenges do traders face in maintaining proper financial records?
What strategies can improve record-keeping practices among traders in Onitsha Market?
Research Hypotheses
H₀: Record-keeping practices do not significantly affect the financial performance of traders in Onitsha Market.
H₀: Challenges in record-keeping do not significantly hinder SME growth in Onitsha Market.
H₀: Improved record-keeping practices do not significantly enhance access to credit for traders.
Scope and Limitations of the Study
This study focuses on traders in Onitsha Market, examining their record-keeping practices and related challenges. It excludes SMEs outside the market and larger enterprises. Limitations include potential reluctance of traders to share financial information and variability in record-keeping practices.
Definitions of Terms
Record-Keeping: The process of systematically recording financial transactions of a business.
SMEs: Small and medium-sized enterprises, typically defined by size, revenue, and employee count.
Traders: Business operators engaged in the buying and selling of goods or services.
ABSTRACT
Oil revenue is indeed an important component of economic growth of the recipient nations. Therefore, most of the oil-rich nation...
Abstract: Addressing accessibility issues in vocational training facilities is essential to...
Stroke remains a leading cause of disability and death worldwide, with a high...
Background of the Study
Effective allocation of IT resources is a critical factor that can influence the overall perform...
Abstract
This research centers on the effect of drug abuse, theories of causes, signs and symptoms, effects, and strate...
ABSTRACT: The role of vocational education in promoting sustainable tourism development is vital for fostering responsible tourism practices a...
Abstract
This study examines SMEs and adoption of cost accounting in Nigeria. The objective solely is t...
Background of the Study
The location of a property is one of the most significant determinants of its appreciation value. I...
ABSTRACT
This study was carried out on the assessment of green human resources and employees' behav...
Background of the Study
Addiction to the usage of social network has greatly increased in contemp...