Financial Control and Organisational Performance of the Nigerian Small and Medium Enterprises (SMEs): A Catalyst for Economic Growth
Hakeem Adeniyi Ajonbadi, The Centre for Entrepreneurship, Kwara State University, Malete, Kwara State, Nigeria.
Abdulazeez Abioye Lawal, Lagos State Polytechnic, Ikorodu, Lagos State, Nigeria.
Dauda Abiola Badmus, Department of Accounting and Finance, Kwara State University, Malete, Kwara State, Nigeria.
Bisayo Oluwatosin Otokiti, Department of Business and Entrepreneurship, Kwara State University, Malete, Kwara State, Nigeria.
The premium interest that contemporary organisation invest in control mechanism within their organisations foregrounds control as a crucial function of management. A number of financial control tools are used in this regard to foster effective handling of this function. The study investigated the relationship between financial control tools and organisational performance. A survey of two hundred and sixty eight SMEs in Lagos was undertaken by means of self-administered questionnaire. Data generated were analyzed by means of descriptive statistics and Pearson Product Moment Correlation. The results revealed that participating firms significantly use the traditional control tools such as stocktaking, quality control and financial statements. Other forms of control were to a lesser extent used by participating firms. In addition, the correlation between the use of these control tools and organisational effectiveness demonstrated a significant relationship. Hence, the need for application of financial control tools for effective performance of Nigerian SMEs was suggested.
Financial Control, Organisational Effectiveness, Small and Medium Enterprises
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