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Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia)
Journal of Investment and Management
Volume 8, Issue 1, February 2019, Pages: 1-7
Received: Dec. 16, 2018; Accepted: Jan. 20, 2019; Published: Jan. 31, 2019
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Girmachew Kahsay, Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Debre Berhan, Ethiopia
Girma Zeleke, Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Debre Berhan, Ethiopia
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This study was carried out to investigate factors affecting use of accounting records on small & micro enterprises in Debre Birhan city, Ethiopia. The Study used a descriptive research design. The target population selected to achieve the objective of this study were small and Micro Sized business enterprises registered in Debre Birhan City. According to the registration record, 886 SMEs were operating in different sectors in the City. The sampling technique selected for this study was proportionate stratified sampling technique. The researchers used simple random sampling to select the sample from each stratum. The study used both primary and secondary source of data. Primary data were collected using closed and open-ended self-administered questionnaires distributed to owners or managers of sampled SMEs. The secondary data used for this study included source of document, report and other written material available to the study from sampled SMEs. The collected data were processed and analyzed using descriptive statistics techniques. Regression analysis was done using STATA version 13. Results revealed that use of accounting records were poorly rated depicting that the management of SMEs did not invest in accounting services. The findings implied that capital and access to credit did have positive relations but insignificant. On the other hand, education and age had positive and significant relation. The researchers recommend that all SMEs should insure correctness in reporting and general record management as it enhances efficiency and effectiveness. Both governmental and non-governmental authorities are also advised to provide short-term training in accounting practice and reporting standards so as to improve the knowledge of accounting system.
Accounting Records, SMEs, Accounting Information
To cite this article
Girmachew Kahsay, Girma Zeleke, Factors Affecting Use of Accounting Records on Small & Micro Enterprises (the Case of Debre Birhan City, Ethiopia), Journal of Investment and Management. Vol. 8, No. 1, 2019, pp. 1-7. doi: 10.11648/j.jim.20190801.11
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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