Financial Management Consultancy and Strategic Planning Support as Drivers of SME Growth in Kogi State, Nigeria

Abstract

The primary objective of this study was to investigate the effects of financial management consultancy services and strategic planning consultancy services on the growth of Small and Medium Scale Enterprises operating in Kogi State, Nigeria. This study is prompted by problems commonly associated with the operations of SMEs which include poor financial management, ineffective budgeting process, inefficient record keeping practices, lack of credit facilities and inability to plan strategically for growth. In designing this study, the researcher adopted exploratory survey research design. The entire population of study included 725 registered SME owners and managers based in Lokoja metropolis, Kogi State. Taro Yamane formula was used to select a sample size of 258 respondents from the population. Structured questionnaires were used to obtain relevant data. A total of 230 usable copies of questionnaire was retrieved from respondents for further data analyses. The validity and reliability of the instrument were tested for before administration. Cronbach’s alpha method was used to measure reliability of the instrument. Alpha value obtained was 0.92. The collected data were analyzed descriptively using simple percentage counts, measures of central tendency and multiple regressions analysis via Statistical Packages for Social Science (SPSS). Results indicated that financial management consultancy services had a significant positive impact on SME growth. Similarly, strategic planning support services significantly influenced SME growth. Therefore, it could be deduced that consultancy services (financial and strategic) have been found to be effective means of boosting SME growth by promoting financial discipline and clarity of direction among other things. It is recommended that SME owners/managers should use professional consultants for tasks like budgeting, financial reporting, credit management, strategic planning and goal setting.