Influence of Financial Detail on SMEs

Abstract

The study examined the Influence of financial Detail on SMEs. Great emphasis has been placed on the growth and development of small and medium enterprise (SME’s) all over the world including Nigeria, the SME’S has greatly contributed to the annual gross domestic product, industrial development and economic growth of various countries inclusive is Nigeria. This study examines the Influence of financial Detail on investment decision of small and medium scale enterprises in Nigeria. The study employed survey research design. The target population of the study SMEs employees consisting of Accounting and Finance, Management and Human resources. The data for the study were collected through the sued of structured questionnaire. The data collected were analyzed using descriptive statistics and chi-square square. The result of the analysis revealed that statement of financial position affects investment position. Comprehensive income statement affects small and medium enterprise; Ratio analysis affects investment decisions. There is a significance importance of investment decision on small and medium scale enterprises. The study concludes that financial Detail has significance Influence on investment decisions of small and medium enterprises. The study also revealed that SMEs do not prepares yearly statement of financial position. The study recommends that there is a need for adequate record-keeping which will help the proprietors to keep track of the performance of their enterprises in order to enhance the profitability of Small-Scale Enterprises and their continuity. The study also recommends that advised SMEs to invest in information technology tools as it improves their efficiency, effectiveness and their overall performance.