Financial Management Practices & The Performance of Selected Small and Medium Enterprises in Kogi State-Nigeria

Abstract

The study took a critical look at financial management practices and  the performance of Small and Medium Enterprises in Kogi state  Nigeria. The study sought to establish a relationship between financial management practices and the performance of Small and Medium Enterprises. The population of the study consist of 115 selected SMEs located in Lokoja metropolis in Kogi State Nigeria. Quantitative research method was used to elicit more information  from respondents with the distribution of questionnaire. Multiple linear regression was used to analyze the data collected from the field .The study found   that financial management practices  is significant to  the performance  of Small and Medium Enterprises. Findings also revealed that financing  enhances the performance  of small medium enterprises.  The study concluded that   small medium enterprises have been affected positively by financial management practices using the various components of financial management. The study recommended that Small and Medium Enterprises should employ the services of portfolio managers that could help in investment decision making through channeling of surplus cash into the various short term investment opportunities available. Finally, there is need for small medium enterprises to increase their financial performance through effective long term plan.