Patterns and Prevalence of Financial Management Practices among SMEs in North-West Nigeria: A Descriptive Study.

Abstract:

Small and medium enterprises (SMEs) are vital to economic growth and employment in Nigeria, yet their survival and growth rates remain low, often due to suboptimal financial management practices. This descriptive study examines the patterns and prevalence of financial planning, record-keeping, and financial decision-making practices among SMEs in North-West Nigeria, a region characterized by high SME density but also significant economic and infrastructural challenges. Using a multi-stage sampling technique, data were collected from 322 SME owners and managers across Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto, and Zamfara states through a structured questionnaire. Descriptive statistics, including means, standard deviations, and frequency distributions, were used to profile the extent and consistency of each financial management practice. The results reveal moderate to high engagement in financial management, with the highest prevalence observed in financial decision-making (M = 3.95, SD = 0.43), followed by record-keeping (M = 3.78, SD = 0.39), and financial planning (M = 3.64, SD = 0.68). Record-keeping was the most consistently applied practice, while financial planning showed the greatest variability, particularly in goal-setting and budgeting. Strategic financing decisions were less prevalent than operational decisions, indicating a gap in long-term financial strategy. The findings highlight the need for targeted training, digitalization of records, and improved access to diverse financing options. This study fills a critical regional gap in the literature and provides actionable insights for policymakers, SME owners, and development partners seeking to strengthen financial management capacity and foster SME growth in North-West Nigeria.