Effect of Financial Reporting on Managerial Efficiency of Small and Medium Enterprises in Nigeria

The study examined the effect of financial reporting on managerial efficiency of small and medium scale Enterprises in Nigeria. Sample size of 170 was drawn from the population of about 200 registered companies in Anambra State in which a total of one hundred and seventy (170) copies of questionnaire were administered out of which one hundred and forty (140) copies representing (82%) of the questionnaire were properly completed and retrieved, while thirty (30) copies representing (18%) were not retrieved. The sources used to gather information for this study includes both primary and secondary sources. The main instrument of data collection was the questionnaire. The data were presented in tables as frequency distribution in the data analysis, and percentage frequencies were used. The hypothesis was tested with ANOVA statistical technique at 95% significance level and 5% error limit. Having analysed the data, the following were the major findings; that there is improper implementation of policies towards small and medium scale enterprises in Nigeria; that small and medium scale enterprises provide effective means of stimulating indigenous entrepreneurship; that poor management practices, financial problems, lack of capital, and lack of infrastructural facilities hinder the performance of small and medium scale enterprises in Nigeria. Hence, we therefore recommend that government should ensure that there will be no improper implementation of its policies towards small and medium scale enterprises and should not in the area of incentive and infrastructural development neglect business activities to facilitate small and medium scale enterprises in Nigeria.