Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia
Journal of Investment and Management
Volume 8, Issue 2, April 2019, Pages: 40-47
Received: Feb. 21, 2019;
Accepted: Apr. 4, 2019;
Published: Apr. 29, 2019
Views 381 Downloads 114
Gashaw Belete Mekonnen, Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Debre Berhan, Ethiopia
The government of Ethiopia gives special emphasis for small and micro enterprises in recent periods for the development of the country and faces various challenges. One of the most critical problems is related to proper recording of accounts and preparation of financial reports. The main objective of this study therefore to examine the accounting practices of Small and Micro enterprises in north shewa zone of Amhara regional state of Ethiopia. 305 Small and micro enterprises were selected as samples from five town administrations of north shewa zone. The researcher used purposive non probability sampling techniques to select towns and disproportionate stratified random sampling techniques which involve dividing the population into homogeneous subgroups in to sector wise (construction, urban agriculture, manufacturing and trade). The study was revealed that more than 50% of the respondents do not keep the accounting records totally due to the reason that lack of accounting knowledge, required more cost, waste of time, more labor intensive. Even for those respondents who prepare accounting records the main constraint faced with them for proper accounting record is lack of accounting knowledge. Therefore, the researcher recommended that the concerned governmental institutions Debre Berhan University, North Shewa zone small and micro enterprises office and north shewa zone TVET colleges arrange training `sessions for those enterprises.
Gashaw Belete Mekonnen,
Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia, Journal of Investment and Management.
Vol. 8, No. 2,
2019, pp. 40-47.
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Amidu M., John E. & Joshua A. (2011). E-Accounting Practices among Small and Medium Enterprises in Ghana. Journal of Management Policy and Practice vol. 12 (4) 2011.
Bancy, W., Muchira. (2012). Record Keeping and Growth of Micro and Small Enterprises, A Case Study of Thika Municipality in Kenya. The School of Business, Kenyatta University.
Biryabarema, E. (1998). Small Scale Business and Commercial Banks in Uganda. Kampala: Makerere University Press.
Clute, R. C. and Gitman, G. B. (1980). A Factor Analytic Study of the Causes of Small Business Failure, Journal of Small Business Management, USA.
Cooley, P. L., & Edwards, C. E. (1983). Financial objectives of small firms. American Journal of Small Business, 8 (1), 27–31.
Cooper DR, & Schindler PS (2003). Business research methods. Irwin: McGraw-Hill. NY.
Copeland, R. M., & Dascher, P. E. (1978). Managerial Accounting. New York, NY: John Wiley.
Deresse,M, Lakew and Zerihun, A, Birbirsa. (2017). Accounting and Reporting Practices of Micro and Small Enterprises in west oromia region, Ethiopia. Research Journal of Finance and Accounting.ISNN 2222-1697(Paper) V8, No 9, 2017.
Dodge, H., Fullerton, S., & Robbins, J. (1994). Stage of the organizational life cycle and competition as mediators of problem perception for small businesses. Strategic Management Journal, 15, 121–134. http://dx.doi.org/10.1002/smj.4250150204.
Fuller, S. (1978). Just Say No to Wall Street, Harvard business Review.
Gilbert, K., Amoako. (2013). Accounting Practices of SMEs: A Case Study of Kumasi Metropolis in Ghana. Canadian Center of Science and Education. International Journal of Business and Management; Vol. 8, No. 24; 2013, ISSN 1833-3850 E-ISSN 1833-8119.
Hussein, M. E. I. M. (1983). Accounting and Control Systems for Small Business. Touché Ross Foundation.
International Labour Organisation (ILO, 1997), General Conditions to Stimulate Job Creation in Small and Medium-Size Enterprises, Report of an International Labour Organisation conference, 85th session, Geneva.
John, K. Mbroh, & Ben, E. Attom. (2011 ). Accounting and Control Systems Practiced By Small and Micro Enterprise Owners within the Cape Coast Metropolitan Area of Ghana. Asian Journal of Business and Management Sciences ISSN: 2047-2528 Vol. 1 No. 9 (28-47).
Kinney, W. R. (2001). Accounting scholarship: What is uniquely ours? The Accounting Review, 76(2), 275–284. http://dx.doi.org/10.2308/accr.2001.76.2.275.
McMahon, R. G. P. (1999). Putting SME Financial Reporting into Theoretical and Practical Perspective. Research Paper Series 98–10. The Flinder University of South Australia, Adelaide.
Mitchell, F., Reid, G., & Smith, J. (2000). Information system development in the small firm: The use of management accounting. London: CIMA Publishing.
Prasad, S., Green, C., & Murinde, V. (2001). Corporate financial structures in developing economies: Evidence from a comparative analysis of Thai and Malay corporations. Working Paper Series, Paper No 35. Finance and Development Research Programme, University of Manchester, Manchester.