Financial Accounting Literacy and Growth of Small and Medium Scale Enterprises (SMEs) in Ondo State

Abstract

Businesses collapse in recent times due to illiteracy of management and stakeholders on how to deal with the financial aspect of their activities. As a result, the study examined the effect of financial accounting literacy and growth of small and medium scale enterprises. The study adopted descriptive research design and obtained data from structured questionnaire, the respondents targeted were Small and Medium Enterprises (SMEs). Data were analyzed using percentages, frequencies, means and ANOVA. Thus, the study concluded that there is a significant relationship between financial accounting literacy and the growth of SMEs in Ondo State thereby having an influence on their growth and development as it is also essential for the survival and continuity of any SME. Based on the findings, the study recommends that the ministry or agency responsible for SMEs in the state should initiate accounting training programs for entrepreneurs running small businesses, since keeping proper accounts enhances profitability and growth of small scale enterprises, also, emphasis should be stressed on the teaching of basic accounting concepts and skills to all students so as to enhance their entrepreneurial skills in every sector.