Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia)

Girmachew Kahsay; Girma Zeleke

doi:doi:10.11648/j.jim.20190801.11

| Peer-Reviewed

Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia)

Girmachew Kahsay, Girma Zeleke

Published in Journal of Investment and Management (Volume 8, Issue 1)

Received: 16 December 2018 Accepted: 20 January 2019 Published: 31 January 2019

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study was carried out to investigate factors affecting use of accounting records on small & micro enterprises in Debre Birhan city, Ethiopia. The Study used a descriptive research design. The target population selected to achieve the objective of this study were small and Micro Sized business enterprises registered in Debre Birhan City. According to the registration record, 886 SMEs were operating in different sectors in the City. The sampling technique selected for this study was proportionate stratified sampling technique. The researchers used simple random sampling to select the sample from each stratum. The study used both primary and secondary source of data. Primary data were collected using closed and open-ended self-administered questionnaires distributed to owners or managers of sampled SMEs. The secondary data used for this study included source of document, report and other written material available to the study from sampled SMEs. The collected data were processed and analyzed using descriptive statistics techniques. Regression analysis was done using STATA version 13. Results revealed that use of accounting records were poorly rated depicting that the management of SMEs did not invest in accounting services. The findings implied that capital and access to credit did have positive relations but insignificant. On the other hand, education and age had positive and significant relation. The researchers recommend that all SMEs should insure correctness in reporting and general record management as it enhances efficiency and effectiveness. Both governmental and non-governmental authorities are also advised to provide short-term training in accounting practice and reporting standards so as to improve the knowledge of accounting system.

Published in	Journal of Investment and Management (Volume 8, Issue 1)
DOI	10.11648/j.jim.20190801.11
Page(s)	1-7
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Accounting Records, SMEs, Accounting Information

References

[1]	Ademola, G. O., James, S. O., & Olore, I. (2012). The roles of record keeping in the survival and growth of small scale enterprisesin Ijumu Local Government Area of Kogi State. Global Journal of Management and Business Research, 12 (13).
[2]	Agyei-Mensah, Ben Kwame, (2011). Financial management practices of small firms in Ghana. African Journal of Business Management Vol.5 (10), pp. 3781-3793, Available online at http://www.academicjournals.org.
[3]	Amaoko, G. B. (2013). Accounting practices of SMEs: A case study of Kumasi metropolis in Ghana. International Journal of Business and Management. Vol. 8, No. 24, pp. 73-83.
[4]	Amidu M., John E. & Joshua A. (2011). E-Accounting Practices among Small and Medium Enterprises in Ghana. Journal of Management Policy and Practice vol. 12 (4) 2011.
[5]	Baas, T., & Schrooten, M (2005). “Relationship Banking and SMEs:A theoretical Analysis.” Berlin: German Institute for Economic Research.
[6]	Baumback, C. M., 1983. Basic Small Management. Prince Hall Incorp, New Jersey.
[7]	Ben Kwame. (2011), Financial management practices of small firms in Ghana: An empirical study, African Journal of Business Management Vol.5 (10), pp. 3781-3793, 18 May 2011Available online at http://www.academicjournals.org/AJBM.
[8]	Cooper D Schindler PS (2006) Business Research Methods 9Th Ed New York NyMcgraw Hill Irwin" Essays and Research Papers.
[9]	Dawuda, A., & Azeko, I. (2015). An Assessment of Financial Records Keeping Behaviour of Small Scale Businesses in Ghana: ACase Study of Bolgatanga Municipality. International Journal of Finance and Accounting, 4 (3), 187-194. http://dx.doi.org.10.5923/j.ijfa.20150403.06.
[10]	Everaert et al. (2006). Outsourcing of Accounting Tasks in SMEs: An extended TCE Model. Working papers.
[11]	Germain, P, J. (2010). Small Business Bookkeeping. Ezinearticles.com.
[12]	Ghaur Pervez (2005). Research methods in business studies: A practical guide. Pearson Education
[13]	Greener (2008). Business Research Methods. Sue Greener and Ventus Publishing.
[14]	Howard, P. (2009). Good Recording Important for Successful Busin Educ ess. Georgia: Angelo State University.
[15]	King, K. & McGrath S. (2002). Globalisation, Enterprise and Knowledge: Educational Training and Development, International Review ofation, Vol. 50(1), 74-76 (3).
[16]	Maseko.n and Manyani.o, (2011). Accounting practices of SMEs in Zimbabwe. Journal of Accounting and Taxation Vol. 3 (8), pp. 171-181, December 2011, Available online at http://www.academicjournals.org/JAT.
[17]	Mitchell, F., Reid, G., & Smith, J. (2000). Information system development in the small firm: The use of management accounting. London: CIMA Publishing.
[18]	Mutambanengwe, J. (2012) Zimbabwe: Obstacles to SME Success in the Country, from the Financial Management, 12 (5). 40-87.
[19]	Omran. o. Mustafa, (2010). A study of accounting information system adoption in the small and medium enterprises in Libya. Master of science, Faculty of college of business, University of UtaraMalaysia.
[20]	Omunuk B. Joseph (1999). Fundamental accounting principles, Uganda. printing and publishing cooperation.
[21]	Onaolapo, A., &Adegbite, I. (2014). The Analysis of the Impact of Accounting Records Keeping on the Performance of Small Scale Enterprises. International Journal of Academic Research in Business and Social Sciences, 4. http://dx.doi.org.10.6007/IJARBSS/V4-i1/506.
[22]	Prasad, S., Green, C., & Murinde, V. (2001). Corporate financial structures in developing economies: Evidence from a comparative analysis of Thai and Malay corporations. Working Paper Series, Paper No 35. Finance and Development Research Programme, University of Manchester, Manchester.
[23]	Sian S, Roberts C (2006). Micro-entity Financial Reporting: Some Empirical Evidence on the Perspectives of Preparers and Users.Infor. Paper prepared for Small and Medium Sized Practices Committee. IFAC. NY.
[24]	Steven Nickolas, (2017). The advantages of stratified sampling, Investopedia.com
[25]	Trivedi, S. M. (2010). An analysis of financial performance of state road Transport Corporation in Gujarat. Doctoral dissertation, Saurashtra University.

Cite This Article

Plain Text BibTeX RIS

APA Style

Girmachew Kahsay, Girma Zeleke. (2019). Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia). Journal of Investment and Management, 8(1), 1-7. https://doi.org/10.11648/j.jim.20190801.11

Copy | Download

ACS Style

Girmachew Kahsay; Girma Zeleke. Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia). J. Invest. Manag. 2019, 8(1), 1-7. doi: 10.11648/j.jim.20190801.11

Copy | Download

AMA Style

Girmachew Kahsay, Girma Zeleke. Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia). J Invest Manag. 2019;8(1):1-7. doi: 10.11648/j.jim.20190801.11

Copy | Download

@article{10.11648/j.jim.20190801.11,
  author = {Girmachew Kahsay and Girma Zeleke},
  title = {Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia)},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {1},
  pages = {1-7},
  doi = {10.11648/j.jim.20190801.11},
  url = {https://doi.org/10.11648/j.jim.20190801.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190801.11},
  abstract = {This study was carried out to investigate factors affecting use of accounting records on small & micro enterprises in Debre Birhan city, Ethiopia. The Study used a descriptive research design. The target population selected to achieve the objective of this study were small and Micro Sized business enterprises registered in Debre Birhan City. According to the registration record, 886 SMEs were operating in different sectors in the City. The sampling technique selected for this study was proportionate stratified sampling technique. The researchers used simple random sampling to select the sample from each stratum. The study used both primary and secondary source of data. Primary data were collected using closed and open-ended self-administered questionnaires distributed to owners or managers of sampled SMEs. The secondary data used for this study included source of document, report and other written material available to the study from sampled SMEs. The collected data were processed and analyzed using descriptive statistics techniques. Regression analysis was done using STATA version 13. Results revealed that use of accounting records were poorly rated depicting that the management of SMEs did not invest in accounting services. The findings implied that capital and access to credit did have positive relations but insignificant. On the other hand, education and age had positive and significant relation. The researchers recommend that all SMEs should insure correctness in reporting and general record management as it enhances efficiency and effectiveness. Both governmental and non-governmental authorities are also advised to provide short-term training in accounting practice and reporting standards so as to improve the knowledge of accounting system.},
 year = {2019}
}

Copy | Download

TY - JOUR
T1 - Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia)
AU - Girmachew Kahsay
AU - Girma Zeleke
Y1 - 2019/01/31
PY - 2019
N1 - https://doi.org/10.11648/j.jim.20190801.11
DO - 10.11648/j.jim.20190801.11
T2 - Journal of Investment and Management
JF - Journal of Investment and Management
JO - Journal of Investment and Management
SP - 1
EP - 7
PB - Science Publishing Group
SN - 2328-7721
UR - https://doi.org/10.11648/j.jim.20190801.11
AB - This study was carried out to investigate factors affecting use of accounting records on small & micro enterprises in Debre Birhan city, Ethiopia. The Study used a descriptive research design. The target population selected to achieve the objective of this study were small and Micro Sized business enterprises registered in Debre Birhan City. According to the registration record, 886 SMEs were operating in different sectors in the City. The sampling technique selected for this study was proportionate stratified sampling technique. The researchers used simple random sampling to select the sample from each stratum. The study used both primary and secondary source of data. Primary data were collected using closed and open-ended self-administered questionnaires distributed to owners or managers of sampled SMEs. The secondary data used for this study included source of document, report and other written material available to the study from sampled SMEs. The collected data were processed and analyzed using descriptive statistics techniques. Regression analysis was done using STATA version 13. Results revealed that use of accounting records were poorly rated depicting that the management of SMEs did not invest in accounting services. The findings implied that capital and access to credit did have positive relations but insignificant. On the other hand, education and age had positive and significant relation. The researchers recommend that all SMEs should insure correctness in reporting and general record management as it enhances efficiency and effectiveness. Both governmental and non-governmental authorities are also advised to provide short-term training in accounting practice and reporting standards so as to improve the knowledge of accounting system.
VL - 8
IS - 1
ER -

Copy | Download

Author Information

Girmachew Kahsay

Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Debre Berhan, Ethiopia
Girma Zeleke

Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Debre Berhan, Ethiopia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Girmachew Kahsay, Girma Zeleke. (2019). Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia). Journal of Investment and Management, 8(1), 1-7. https://doi.org/10.11648/j.jim.20190801.11

Copy | Download

ACS Style

Girmachew Kahsay; Girma Zeleke. Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia). J. Invest. Manag. 2019, 8(1), 1-7. doi: 10.11648/j.jim.20190801.11

Copy | Download

AMA Style

Girmachew Kahsay, Girma Zeleke. Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia). J Invest Manag. 2019;8(1):1-7. doi: 10.11648/j.jim.20190801.11

Copy | Download

@article{10.11648/j.jim.20190801.11,
  author = {Girmachew Kahsay and Girma Zeleke},
  title = {Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia)},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {1},
  pages = {1-7},
  doi = {10.11648/j.jim.20190801.11},
  url = {https://doi.org/10.11648/j.jim.20190801.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190801.11},
  abstract = {This study was carried out to investigate factors affecting use of accounting records on small & micro enterprises in Debre Birhan city, Ethiopia. The Study used a descriptive research design. The target population selected to achieve the objective of this study were small and Micro Sized business enterprises registered in Debre Birhan City. According to the registration record, 886 SMEs were operating in different sectors in the City. The sampling technique selected for this study was proportionate stratified sampling technique. The researchers used simple random sampling to select the sample from each stratum. The study used both primary and secondary source of data. Primary data were collected using closed and open-ended self-administered questionnaires distributed to owners or managers of sampled SMEs. The secondary data used for this study included source of document, report and other written material available to the study from sampled SMEs. The collected data were processed and analyzed using descriptive statistics techniques. Regression analysis was done using STATA version 13. Results revealed that use of accounting records were poorly rated depicting that the management of SMEs did not invest in accounting services. The findings implied that capital and access to credit did have positive relations but insignificant. On the other hand, education and age had positive and significant relation. The researchers recommend that all SMEs should insure correctness in reporting and general record management as it enhances efficiency and effectiveness. Both governmental and non-governmental authorities are also advised to provide short-term training in accounting practice and reporting standards so as to improve the knowledge of accounting system.},
 year = {2019}
}

Copy | Download