ACCOUNTING PRACTICES AND SURVIVAL OF SMALL AND MEDIUM ENTERPRISES IN UGHELI NORTH LOCAL GOVERNMENT AREA OF DELTA STATE

Abstract

The study examined the relationship between accounting practices and the survival of small and medium enterprises (SMEs) in Ughelli North Local Government Area of Delta State, Nigeria. It was motivated by the continuing vulnerability of SMEs to liquidity pressures, weak financial records, constrained access to finance and limited use of digital accounting tools, notwithstanding the importance of MSMEs to employment, entrepreneurship and inclusive economic growth. A cross-sectional survey design with retrospective measurement of business survival was employed. Structured questionnaires were administered to SME owners and managers, and 320 usable responses were analysed using descriptive statistics, chi-square tests and multivariable logistic regression. The results showed that bookkeeping significantly increased the odds of SME survival (OR = 2.15, 95% CI = 1.28–3.62, p = .004), while financial statement preparation produced the strongest significant association (OR = 2.43, 95% CI = 1.22–4.85, p = .011). Budgeting (OR = 1.61, p = .067) and computerized accounting (OR = 1.89, p = .083) were positive but not statistically significant at the 5% level. The model recorded a pseudo R² of 0.21 and an AUC of 0.77. The study concluded that basic, disciplined accounting practices were particularly important to SME continuity in the study area. It recommended practical bookkeeping and financial-reporting training, affordable digital accounting solutions and stronger credit linkages for SMEs.