Propelling Growth of Small and Medium Scale Enterprises (Smes) in Nigeria Through Budgeting for Improved Business Performance
DOI:
https://doi.org/10.64321/10.64321/jcr.v3i5.08Keywords:
Budgeting, Budget, Small and Medium Scale Enterprises, SMEs, Business Growth, Business PerformanceAbstract
The sudden disappearances of Small and Medium Scale Enterprises (SMEs) in Nigeria are major concerns to the Nigerian economy. This is because SMEs play important roles in ensuring that the economy is viable hence, their sudden dearth cannot be overlooked, especially for a developing economy like Nigeria. However, it has been observed that SMEs in Nigeria become moribund within few years of their existence. This can be attributed to poor financial management practices. These SMEs do not track their expenses and control their cash flows. To this end, budgeting, as a financial management tool, can be used by these SMEs as a way of growing their businesses and improving their performances. It is based on this backdrop that this theoretical study was carried out with the aim of presenting budgeting as a veritable and valuable tool to propel the growth and improve the performances of Small and Medium Scale Enterprises (SMEs) in Nigeria. The study, having thematically analysed the variables, concluded that when budgeting is appropriately done, and the budget effectively implemented, it will spur SMEs in Nigeria to growth and optimum performance. Thus, it suggested, amongst others, that SMEs in Nigeria should prepare budgets for their fiscal years.
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