Financial Management Capabilities and Demographic Characteristics on Sustainable Sales Growth of Selected Small and Medium Enterprises (MSMEs) in Nigeria

Abstract

This study measured the relationship between of financial management capabilities and sustainable sales growth of selected small and medium enterprises using demographic characteristics as a mediating variable. Explanatory survey was used as a research design. The population of the study was 2465 registered Medium and Small Scale Enterprises (MSMEs) in Small and Medium Development Agency of Nigeria (Ogun State Chapter). The determined sample size of study was 288 copies of questionnaire validly retrieved from owners and managers of MSMEs and used for the analysis. Both descriptive and correlation analyses were employed for the test of the hypothesis through Statistical Package for Social Sciences (SPSS) software 22. The study revealed that MSMEs that are supposed to contribute to Gross Domestic Products of the state are collapsing due to lack of useful financial management capabilities (financial planning, financial forecasting, financial budgeting, & financial auditing and controlling) because of their business size and nature. The study concluded that MSMEs in food, agro-allied and services need to establish strong financial management capabilities to enhance their relevance, survival and growth in Ogun State. The study recommended that policy makers in Nigeria should embark on policy implementation that provides better and easier financial succour and empower MSME owners and managers to reduce the collapse of MSMEs in Ogun State.