Financial Management and Performance of Selected SMEs

A Case of Kogi State – Nigeria


  • Yusufu Ojochenemi Sunday Kogi State University Anyigba – Nigeria



Abstract Views: 620

The study took a critical look at financial management and the performance of Small and Medium Enterprises in Kogi  State  Nigeria.  The population of the study consist of 115 selected SMEs located in Lokoja metropolis in Kogi State Nigeria. Questionnaires were distributed to the operators of the sampled SME’s. Multiple linear regression was adopted in analyzing the result. It was found that financing enhances the performance of small medium enterprises. The study also found that investment is significant to the performance of SME’s, in Nigeria. The study concluded that the components of financial management is significant to the performance of small and medium enterprises. The study recommended that SME’s should employ the services of portfolio managers that will help in investment decision making. Finally, there is need for SME’s to increase their financial performance through effective long term plan.


Financial management, Financing, Investment decision, Performance of SMEs


Abimbola, O.A., & Kolawole, O. A. (2017). Effect of working capital management practices on the performance of Small and Medium Enterprises in Oyo state, Nigeria. Asian journal of economics, business and accounting.3 (4): 1-8, article no.Ajeba.35237. ISSN: 2456 639.

Abioro, M. (2013). The impact of cash management on the performance of manufacturing companies in Nigeria, uncertain supply chain management, 1 (3), pp. 177-192.

Alhassan, M., Erasmus, D. G., & Portia, P. (2018) Financial management, firm growth and Profitability of small and medium scale enterprises(SMEs).Information management and business review (ISSN 2220-3796) 10 (3), pp. 25-37.

Berger, A.N., & Udell, G.F. (1998). The economics of small business finance: the roles of private equity and debt marketers in financial growth circle. Journal of banking and finance. 9 (22),873-897.

Biljon, V. (2015). SA SMEs struggle with cash flow as a result of delayed payment. Available at: [Accessed 14 July 2020].

Chinonye, L.M., Akinbode, M.O., & Onochie, M.P. (2015) Strategies for financing Small and Medium Enterprises in Nigeria: concept and issues. International journal of business and general management (IJBGM) ISSN (P):2319-2267;ISSN (E):2319-227 , 4(5), 25-38 IASET .

Cook, P., & Nixson, F. (2000) Finance and small and medium-sized enterprise development. Pearson education.

Enow, S. (2015). The working capital management practices of small medium and micro enterprises in the Cape Metropolis. Unpublished master of technology thesis. cape town. cape peninsula university of technology. Merchant factors. Finance beyond the numbers. available at: .php#2 [Accessed 14 July 2020]

Etuk,R.U., Etuk, G.R., & Baghebo,M.(2014). Small and medium scale enterprises(SME’s) and Nigeria’s economic development. Mediterranean journal of social sciences,5(7), 656-662.

Forkuoh, S. K. & Li, Y. (2015). Electricity power insecurity and SMEs growth: a case study of the cold store operators in the as a market area of the Kumasi metro in Ghana. Open Journal of Business and Management, 3(03), 312.

Gveroski, T., & Jankuloska, A.R. (2017) Determinant of investment decisions in SME’s. Balkan and near eastern journal of social sciences ,03 (01).

Gyebi, F., Quain, S. (2013). Internal Control on cash collection.A case of the electricity company of Ghana ltd, Accra East region, International Journal of Business and Social Science, 4 (9), 217-233

Janse, B. (2020) Financial forecasting. Retrieved 8-07-2020 from toolshero: management /financial-forcasting.

Johnson, G., Scholes, K., & Whittington, R. (2006). Exploring corporate strategy, Harlow, FT/ Pretence Hall.

Karadag, H. (2015). Financial management challenges in small and medium sized enterprises: A strategic management approach. Emerging markets Journal, 5, 26-40. Doi: 10.5195/emaj.67.

Kaplan Publishing. (2012). Kaplan Financial Knowledge Bank. Available at: 8NFPIs%29.aspx. Accessed on 12 July 2020

Kilonzo J. M. & Ouma. (2015). Financial management on the growth of Small and Medium Enterprises: A case of manufacturing enterprises in Nairobi County, Kenya. IOSR Journal of Business and Management, 17(8), 65-77. DOI: 10.9790/487X-17826577

Kitonga, K. G. (2013). The relationship between financial management and financial performance in the shipping industry in Kenya. Unpublished MBA project University of Nairobi, Kenya.

Muneer, S., Ahmad, R.A., & Azhar, A. (2017). Impact of financial management on SMEs profitability with moderating role of agency cost. Information management and business review journal (ISSN 2220-3796) 9 (1), 23- 30.

Mutua, J. M. (2015). Effect of bookkeeping on the growth of Small and Medium Enterprises in Chuka town. European Journal of Business and Social Sciences, 4(7), 102-112.

MSMEs Survey Report (2010). A collaborative report on micro, Small and Medium Enterprises (MSMEs) in Nigeria, by national bureau of statistics (NBS) and small and medium enterprises development agency of Nigeria (SMEDAN).

Myers, S., Majluf, N, (21984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of financial economics 13, 187-222.

Olajide, O., T., Tijani, A.A., Adeoye, A.O., & Elegunde, A.F. (2015). Financial management as a tool for the growth of small business enterprises in Lagos State: An Empirical Approach. Indian Journal of Commerce & Management Studies. ISSN2240 0310.EISSN:2229-5674 VI(1).

Rugui, L., & Omagwa, J. (2018). Effect of financial management on performances of selected Small and Medium Enterprises in Limurutown, Kenya. International journal of scientific and education research .2. (05).

Shehu, A.M.(2014). Market orientation, knowledge management, entrepreneurial orientationand performance of Nigerian SME’s. Ph.D Dissertation, university of utara, Malaysia.

Shina, A. (2017).Review study of strategic financial management from the perspective of organizational performance. International journal of information movement. ISSN:2456- 0553, 2(V) 126-129.

Tabol, S. E., & Kamala, P. (2016) Cash management practices of small, medium and micro enterprises in the Cape Metropolis, South Africa. Investment management and financial innovations.13 (1)230. DOI:10.21511/imfi.13 (1-1).10

Taiwo, A., Ayodeji,A.M., & Yusuf , A.B. (2012). Impact of Small and Medium Enterprises on economic growth and development. American journal of business and management,1(1),18-22.

Uwonda, G., Okello, N., Okello, N.G. (2013). Cash flow management utilization by Small Medium Enterprises (SMEs) in Northern Uganda, Merit Research Journal of Accounting, Auditing, Economics and Finance, 1 (5), 67-80.

Yusufu, O.S., Suleiman ,O. & Akuh, J.I. (2020). Financial management strategy and the growth of small and medium enterprises. Ilorin Journal of Human Resource Management (IJHRM) .4,(2).



How to Cite

Sunday, Y. O. (2021). Financial Management and Performance of Selected SMEs: A Case of Kogi State – Nigeria. IRAPA International Journal of Business Studies, 2(2), 22–26.