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 simple random sampling
method was used to draw a sample of 100 enterprises from a survey
population of 135 registered SMEs from the Cape Coast Chamber of
Commerce. A structured survey questionnaire was used in gathering primary
data for the study. A total of 100 questionnaires were returned and used for
analysis. 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.
