APPRAISAL OF FINANCIAL MANAGEMENT ON PROFITABILITY OF SMES IN ANAMBRA STATE

Authors: Dr. Okereoti Chinedu U, Dr. Ezenwafor Emmanuel C & Esther Timothy Tanko

Journal:Nigerian Journal Of Technical Education | Volume: 22 | Issue: 1 | Pages: 122 - 138

Keywords: Budgetary practice, Capital investment, Profit level of SMEs

Abstract

This study determined the how financial management affected the profitability of SMEs in Anambra state. The study specifically aimed at examining the effect of budgetary practice and capital investment practice on the profit level of SMEs in Anambra State. Survey research design guided the study. The sample size of the study purposively used 129 entrepreneurs. Primary data were gathered via a self-administered questionare conataining Likert- type scale questions.spearmen Ranked Order correlation was deployed in testing the four null hypothesis of the study. The study found the following: budgetary practice has a statistically significant and positive effect on the profit level of SMEs in Anambra State(p-value = 0.022); capital investment practices significantly and positively affect the profit level of SMEs in Anambra state(p-value = 0.000). The study suggested that corporate managers should ensure that they utilise the efficiency of working capital management to determine sufficient cash flow which their firm requires for the day-to-day operation of the firm while trading-off between liquidity and profitability.