Bookkeeping and Perception of Growth of Small and Medium Scale Enterprises in the Cape Coast Metropolis

Abstract

The role of SMEs in the development of any nation cannot be over-emphasised. Yet their growth into bigger firms is often beset with many challenges. This study sought to examine the perception of business owners about the effect of bookkeeping on the growth of small and medium-scale enterprises (SMEs) in the Cape Coast Metropolis. The study employed the quantitative research method and survey design. The Krejcie and Morgan sample size determination table was used to generate a sample size of 135 SMEs out of the 413 registered SMEs at Cape Coast. A structured survey questionnaire was used in gathering primary data for the study. The simple random sampling method was used and a response rate of 74% of the 135 registered SMEs was generated and analysed. The study found that most SMEs surveyed did not keep complete written records even though majority (74%) of them perceived bookkeeping as an important tool for business growth. The challenges that confronted SMEs owners in bookkeeping were lack of personal knowledge in bookkeeping, lack of record keepers, time and resources constraints among others. The study also found that majority SME owners perceived bookkeeping to have an effect on the growth of SMEs and level of education of SME owners or managers also had a positive relationship with their bookkeeping practices. The study recommended that the National Board for Small Scale Industries (NBSSI) in Ghana should initiate policies that will intensify education of SMEs operators on bookkeeping since many of them lacked personal knowledge in bookkeeping. Business operators were also recommended to go for seminars and training that will improve their record keeping skills.

Keywords: SMEs, Bookkeeping, Growth, Cape Coast, Metropolis, NBSSI