Assessing the impacts of Proper Book-Keeping on the performance of Small and Medium Scale Enterprises (SMEs) in Kwaebibirem district of Ghana

Abstract

Small and Medium Enterprises (SMEs) form a very large number of Ghana's economy and this sector also has been recognized as a significant sector in employment creation, income generation, poverty alleviation and a base for industrial development.  In spite of the enormous potential of SMEs, poor record keeping is identified as a constraint hampering its performance and growth in Ghana.    The general objective of this study was to assess the impacts of proper bookkeeping on the performance of SMEs in Ghana. 

This was done by a survey carried out in Kwaebibirem district in the Eastern Region of Ghana through personal interviews and questionnaire and analysed using the F-Statistic (ANOVA).

The study considered a total population of 175 comprising SMEs, Banks officials as well as National Board Small Scale Industries (NBSSI) office in the District. Out of this figure, a simple random sampling technique was used to select a sample size of 120 for the study.

The research revealed that the Small and Medium scale Enterprises (SMEs) although form the larger sector of

the economy and constitute important component of the industrial life of Ghana, there are various factors that account for lack of bookkeeping or improper bookkeeping in businesses and these must be taken into consideration if an organization desire to progress.  Results also showed that keeping proper books of account enhances performance of small and medium scale businesses.

Some recommendations which will go a long way to improve records keeping and financial management of SMEs have been made.