Accounting Practices as a Catalyst for SME Growth in Nigeria: A Study of Selected SMEs in Akwa Ibom State

Abstract

This study examines the influence of accounting practices on the growth of Small and Medium Enterprises (SMEs) in Akwa Ibom State, Nigeria. The specific objectives are to evaluate the effects of book-keeping, financial management practices, and accounting knowledge on SME growth. The study adopted a survey research design, with a population of 143 and a determined sample size of 105 using the Taro Yamane formula. Data were collected via structured questionnaires and analyzed using simple linear regression. Findings from the study reveal that book-keeping (R²=0.058, β=0.937, p<0.05), financial management practices (R²=0.488, β=2.771, p<0.01), and accounting knowledge (R²=0.488, β=0.427, p<0.01) have significant positive influences on SME growth in Akwa Ibom State. The study concludes that proper accounting practices are critical catalysts of SME growth and recommends targeted training interventions for SME operators in Akwa Ibom State.