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Financial Management Practices and Growth of Small and Medium-Scale Enterprises: The case of Kassena-Nankana West District

Author

Listed:
  • Godfrey Adda

Abstract

The promotion of financial management practices and growth of Small and Medium-scale Enterprises (SMEs) can contribute significantly towards the sustained elevation of a nation for a better or more humane life. SMEs play a crucial role in addressing the impediments of poverty, inequality and job creation. Yet, many SMEs face numerous challenges ranging from the lack of capital, poor management skills and the application of best financial management practices.This paper explores SMEs’ financial management skills and practices in relation to their growth. The study used questionnaire to collect data from managers or owners of SMEs. Descriptive statistics was used to present the results of the data. Not only that but also, a multiple regression model was also used to test the correlation between financial management practices of SMEs and business growth. The results indicates a moderate correlation between the financial management practices of the SMEs and the growth of the enterprises. Based on the findings, it is recommended for targeted financial education programmes to help managers and owners of SMEs develop and adopt best financial management practices.

Suggested Citation

  • Godfrey Adda, 2020. "Financial Management Practices and Growth of Small and Medium-Scale Enterprises: The case of Kassena-Nankana West District," Research in Business and Management, Macrothink Institute, vol. 7(2), pages 39-58, August.
    • Handle: RePEc:mth:rbmjnl:v:7:y:2020:i:2:p:39-58
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    References listed on IDEAS

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    1. Shigehiro Shinozaki, 2012. "A New Regime of SME Finance in Emerging Asia: Empowering Growth-Oriented SMEs to Build Resilient National Economies," Working Papers on Regional Economic Integration 104, Asian Development Bank.
    2. Maksimov, Vladislav & Wang, Stephanie Lu & Luo, Yadong, 2017. "Reducing poverty in the least developed countries: The role of small and medium enterprises," Journal of World Business, Elsevier, vol. 52(2), pages 244-257.
    3. Nuala O'Donnell & Mary Keeney, 2010. "Financial capability in Ireland and a comparison with the UK," Public Money & Management, Taylor & Francis Journals, vol. 30(6), pages 355-362, November.
    4. Abraham,Facundo & Schmukler,Sergio L. & Abraham,Facundo & Schmukler,Sergio L., 2017. "Addressing the SME finance problem," Research and Policy Briefs 120333, The World Bank.
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    Cited by:

    1. Dr. (Mrs.) Ayeni-Agbaje Abiodun Rafiat & Akpore Henry, 2026. "Financial Management Practices and Financial Performance of Small and Medium Enterprises in Ekiti State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(3), pages 822-839, March.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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