EFFECT OF BOOKKEEPING ON THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN CHUKA TOWN
Journal Title: European Journal of Business and Social Sciences - Year 2015, Vol 4, Issue 7
Abstract
Despite the effort made by the government of Kenya to support the growth of SMEs sector by creating enabling environment through appropriate legal and regulatory procedures, and in spite the fact that banks have recently made micro-credit accessible to SMEs, there is no indication that the sector is growing. This research was therefore set to investigate the extent to which the owners or managers of Small and Medium Enterprises kept records in their businesses. For the success of SMEs accurate records of business transactions need to be kept. The target population of the study was the owners or managers of SMEs in Chuka Town. The study used both purposive and random methods to sample the respondents. The study found that the SMEs do not keep complete accounting records because of lack of accounting knowledge and the cost of hiring professional accountants. As a result, there is inefficient use of accounting information to support financial performance measurement by SMEs. This made it difficult for the entrepreneurs to calculate their business profit efficiently. Education is also critical to enable small business owners acquire more knowledge on bookkeeping practices. This is through introduction of seminars, workshops and training sessions where such knowledge can be acquired. Universities and colleges should also offer more courses related to bookkeeping apart from the general business courses.
Authors and Affiliations
JOHN MUTISYA MUTUA| Department of Business Administration, Chuka University,Chuka-KENYA Correspondence Email: johnmutua@gmail.com
Keywords
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- EP ID EP10648
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