BOOKKEEPING IN MICRO ENTERPRISES AND THE CONCEPT OF SUSTAINABILITY

admin/ October 1, 2019/ Journal of Business and Social science/ 0 comments

BOOKKEEPING IN MICRO ENTERPRISES AND THE CONCEPT OF SUSTAINABILITY


1OGUNSANMI, Oluwatosin,  2OMOROGBE, Comfort .E. & UCHEHARA Chris Chigo

1,2&3 Department of Accounting &Finance, Crawford University,Igbesa, Ogun- State

Correspondence email: omorogbece@yahoo.com

ABSTRACT

Business sustainability has being a major issue of concern as research showed that most micro, small and medium enterprises businesses have extremely high mortality rate as over 60% fold-up after five years of existence. Many assume that lack of capital is the major cause of closure. This study however, examined the issue from a different perspective. It studied sustainability of microenterprise in Yaba Local Government Area of Lagos State through the examination of the effect of bookkeeping. Sustainability was inference from finance, profit, growth opportunities and financial control. A sample of 100 micro-enterprises located in Yaba Local Government was purposively selected and questionnaire administered to owners of such enterprises. The sample ranged from hair dressing & barbing saloon to Boutique housing foot wears, clothing and jewelries; medicine shop, mini-marts, and pastry/bakery shops. The research instrument examined the standard of bookkeeping records as well as the depth of appreciation of bookkeeping. The data gathered was analysed using descriptive and inferential statistics. The result from the regression showed that only 24% (R2 = 0.24.1); (p≤ 0.001) of the variation in the use of bookkeeping explained effect on microenterprises sustainability. The study thus recommended that standard bookkeeping and accounting should be in place to enable microenterprises control their finances in order to project growth for sustainability.

Keywords: Sustainability, Bookkeeping, Growth, Finances, Profit

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