MANAGEMENT ACCOUNTING INFORMATION AS DETERMINANTS FOR SUSTAINABLE SMALL AND MEDIUM SCALE ENTERPRISES – OGUN STATE EXPERIENCE

Abstract

n order to ensure sustainability, it is imperative to assess the role management accounting information utilisation plays in helping Small and Medium-Scale Enterprises (SME) operators achieve profit targets. Three hundred forty-four (344) respondents were randomly selected from a total of 2,465 in Ogun State using Taro Yamane's (1967) formulae. A 5-point Likert scale questionnaire was designed and sent to participants using Google Form software. Using SPSS version 23.0, the responses were analysed using a T-test at α=0.05 significance level. Results showed that the majority of SME owners reported that their accountants always provided management accounting information (MAI) and that utilisation of the accounting information contributed 20.9% of their intended profit. There was an insignificant association (-.222) between sustainable SMEs and the enterprises’ profit trend, suggesting that a consistent rise in SMEs' profits does not ensure their long-term viability. It was concluded that SME operators' utilisation of management accounting information affects the viability of SMEs in the studied region. It is advised that relevant government bodies enact and implement policies on the need for SME owners to outsource their accounting duties if they cannot afford to hire accountants. This is expected to encourage the expansion of SME activities in a sustainable manner and improve the effectiveness of their operations.