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

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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

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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), 2024. Published by Science Publishing Group

Keywords

Accounting Records, SMEs, Accounting Information

References

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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

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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

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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

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@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}
}

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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 -

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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

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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

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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

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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

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@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}
}

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