ABSTRACT
The survey research design was adopted to determine whether the financial management practices of small firms in Nigeria impacted on their profitability, growth and survival. Five independent variables (accounting systems, financial management information, working capital management, budgeting practices and managerial planning) were used in the evaluation which was restricted to six small firms. Results indicate that two financial information variables (accounting system and financial management information) alone dominate the risk perception of fund providers. As a result, small firms find it difficult to source adequate funds for business operations. The study also reveals that the five independent variables have significant impact on the survival, growth and profitability of small firms. SME firms are therefore advised to employ the services of qualified accountants in order to upgrade their financial management practices to enhance their overall performance.
BACKGROUND OF THE STUDY
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Background to the Study
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