Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia

Gashaw Belete Mekonnen

doi:doi:10.11648/j.jim.20190802.12

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Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia

Gashaw Belete Mekonnen

Published in Journal of Investment and Management (Volume 8, Issue 2)

Received: 21 February 2019 Accepted: 4 April 2019 Published: 29 April 2019

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Abstract

The government of Ethiopia gives special emphasis for small and micro enterprises in recent periods for the development of the country and faces various challenges. One of the most critical problems is related to proper recording of accounts and preparation of financial reports. The main objective of this study therefore to examine the accounting practices of Small and Micro enterprises in north shewa zone of Amhara regional state of Ethiopia. 305 Small and micro enterprises were selected as samples from five town administrations of north shewa zone. The researcher used purposive non probability sampling techniques to select towns and disproportionate stratified random sampling techniques which involve dividing the population into homogeneous subgroups in to sector wise (construction, urban agriculture, manufacturing and trade). The study was revealed that more than 50% of the respondents do not keep the accounting records totally due to the reason that lack of accounting knowledge, required more cost, waste of time, more labor intensive. Even for those respondents who prepare accounting records the main constraint faced with them for proper accounting record is lack of accounting knowledge. Therefore, the researcher recommended that the concerned governmental institutions Debre Berhan University, North Shewa zone small and micro enterprises office and north shewa zone TVET colleges arrange training `sessions for those enterprises.

Published in	Journal of Investment and Management (Volume 8, Issue 2)
DOI	10.11648/j.jim.20190802.12
Page(s)	40-47
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Accounting Practices, Small and Micro Enterprises, North Shewa Zone, Ethiopia

References

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[8]	Deresse,M, Lakew and Zerihun, A, Birbirsa. (2017). Accounting and Reporting Practices of Micro and Small Enterprises in west oromia region, Ethiopia. Research Journal of Finance and Accounting.ISNN 2222-1697(Paper) V8, No 9, 2017.
[9]	Dodge, H., Fullerton, S., & Robbins, J. (1994). Stage of the organizational life cycle and competition as mediators of problem perception for small businesses. Strategic Management Journal, 15, 121–134. http://dx.doi.org/10.1002/smj.4250150204.
[10]	Fuller, S. (1978). Just Say No to Wall Street, Harvard business Review.
[11]	Gilbert, K., Amoako. (2013). Accounting Practices of SMEs: A Case Study of Kumasi Metropolis in Ghana. Canadian Center of Science and Education. International Journal of Business and Management; Vol. 8, No. 24; 2013, ISSN 1833-3850 E-ISSN 1833-8119.
[12]	Hussein, M. E. I. M. (1983). Accounting and Control Systems for Small Business. Touché Ross Foundation.
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[16]	McMahon, R. G. P. (1999). Putting SME Financial Reporting into Theoretical and Practical Perspective. Research Paper Series 98–10. The Flinder University of South Australia, Adelaide.
[17]	Mitchell, F., Reid, G., & Smith, J. (2000). Information system development in the small firm: The use of management accounting. London: CIMA Publishing.
[18]	Prasad, S., Green, C., & Murinde, V. (2001). Corporate financial structures in developing economies: Evidence from a comparative analysis of Thai and Malay corporations. Working Paper Series, Paper No 35. Finance and Development Research Programme, University of Manchester, Manchester.

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Gashaw Belete Mekonnen. (2019). Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia. Journal of Investment and Management, 8(2), 40-47. https://doi.org/10.11648/j.jim.20190802.12

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Gashaw Belete Mekonnen. Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia. J. Invest. Manag. 2019, 8(2), 40-47. doi: 10.11648/j.jim.20190802.12

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AMA Style

Gashaw Belete Mekonnen. Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia. J Invest Manag. 2019;8(2):40-47. doi: 10.11648/j.jim.20190802.12

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@article{10.11648/j.jim.20190802.12,
  author = {Gashaw Belete Mekonnen},
  title = {Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {2},
  pages = {40-47},
  doi = {10.11648/j.jim.20190802.12},
  url = {https://doi.org/10.11648/j.jim.20190802.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190802.12},
  abstract = {The government of Ethiopia gives special emphasis for small and micro enterprises in recent periods for the development of the country and faces various challenges. One of the most critical problems is related to proper recording of accounts and preparation of financial reports. The main objective of this study therefore to examine the accounting practices of Small and Micro enterprises in north shewa zone of Amhara regional state of Ethiopia. 305 Small and micro enterprises were selected as samples from five town administrations of north shewa zone. The researcher used purposive non probability sampling techniques to select towns and disproportionate stratified random sampling techniques which involve dividing the population into homogeneous subgroups in to sector wise (construction, urban agriculture, manufacturing and trade). The study was revealed that more than 50% of the respondents do not keep the accounting records totally due to the reason that lack of accounting knowledge, required more cost, waste of time, more labor intensive. Even for those respondents who prepare accounting records the main constraint faced with them for proper accounting record is lack of accounting knowledge. Therefore, the researcher recommended that the concerned governmental institutions Debre Berhan University, North Shewa zone small and micro enterprises office and north shewa zone TVET colleges arrange training `sessions for those enterprises.},
 year = {2019}
}

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TY  - JOUR
T1  - Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia
AU  - Gashaw Belete Mekonnen
Y1  - 2019/04/29
PY  - 2019
N1  - https://doi.org/10.11648/j.jim.20190802.12
DO  - 10.11648/j.jim.20190802.12
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 40
EP  - 47
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20190802.12
AB  - The government of Ethiopia gives special emphasis for small and micro enterprises in recent periods for the development of the country and faces various challenges. One of the most critical problems is related to proper recording of accounts and preparation of financial reports. The main objective of this study therefore to examine the accounting practices of Small and Micro enterprises in north shewa zone of Amhara regional state of Ethiopia. 305 Small and micro enterprises were selected as samples from five town administrations of north shewa zone. The researcher used purposive non probability sampling techniques to select towns and disproportionate stratified random sampling techniques which involve dividing the population into homogeneous subgroups in to sector wise (construction, urban agriculture, manufacturing and trade). The study was revealed that more than 50% of the respondents do not keep the accounting records totally due to the reason that lack of accounting knowledge, required more cost, waste of time, more labor intensive. Even for those respondents who prepare accounting records the main constraint faced with them for proper accounting record is lack of accounting knowledge. Therefore, the researcher recommended that the concerned governmental institutions Debre Berhan University, North Shewa zone small and micro enterprises office and north shewa zone TVET colleges arrange training `sessions for those enterprises.
VL  - 8
IS  - 2
ER  -

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Author Information

Gashaw Belete Mekonnen

Department of Accounting and Finance, College of Business and Economics, Debre Berhan University, Debre Berhan, Ethiopia

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Plain Text BibTeX RIS

APA Style

Gashaw Belete Mekonnen. (2019). Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia. Journal of Investment and Management, 8(2), 40-47. https://doi.org/10.11648/j.jim.20190802.12

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ACS Style

Gashaw Belete Mekonnen. Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia. J. Invest. Manag. 2019, 8(2), 40-47. doi: 10.11648/j.jim.20190802.12

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AMA Style

Gashaw Belete Mekonnen. Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia. J Invest Manag. 2019;8(2):40-47. doi: 10.11648/j.jim.20190802.12

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@article{10.11648/j.jim.20190802.12,
  author = {Gashaw Belete Mekonnen},
  title = {Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {2},
  pages = {40-47},
  doi = {10.11648/j.jim.20190802.12},
  url = {https://doi.org/10.11648/j.jim.20190802.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190802.12},
  abstract = {The government of Ethiopia gives special emphasis for small and micro enterprises in recent periods for the development of the country and faces various challenges. One of the most critical problems is related to proper recording of accounts and preparation of financial reports. The main objective of this study therefore to examine the accounting practices of Small and Micro enterprises in north shewa zone of Amhara regional state of Ethiopia. 305 Small and micro enterprises were selected as samples from five town administrations of north shewa zone. The researcher used purposive non probability sampling techniques to select towns and disproportionate stratified random sampling techniques which involve dividing the population into homogeneous subgroups in to sector wise (construction, urban agriculture, manufacturing and trade). The study was revealed that more than 50% of the respondents do not keep the accounting records totally due to the reason that lack of accounting knowledge, required more cost, waste of time, more labor intensive. Even for those respondents who prepare accounting records the main constraint faced with them for proper accounting record is lack of accounting knowledge. Therefore, the researcher recommended that the concerned governmental institutions Debre Berhan University, North Shewa zone small and micro enterprises office and north shewa zone TVET colleges arrange training `sessions for those enterprises.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Accounting Practices of Small and Micro Enterprises in North Shewa Zone Amhara Regional State of Ethiopia
AU  - Gashaw Belete Mekonnen
Y1  - 2019/04/29
PY  - 2019
N1  - https://doi.org/10.11648/j.jim.20190802.12
DO  - 10.11648/j.jim.20190802.12
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 40
EP  - 47
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20190802.12
AB  - The government of Ethiopia gives special emphasis for small and micro enterprises in recent periods for the development of the country and faces various challenges. One of the most critical problems is related to proper recording of accounts and preparation of financial reports. The main objective of this study therefore to examine the accounting practices of Small and Micro enterprises in north shewa zone of Amhara regional state of Ethiopia. 305 Small and micro enterprises were selected as samples from five town administrations of north shewa zone. The researcher used purposive non probability sampling techniques to select towns and disproportionate stratified random sampling techniques which involve dividing the population into homogeneous subgroups in to sector wise (construction, urban agriculture, manufacturing and trade). The study was revealed that more than 50% of the respondents do not keep the accounting records totally due to the reason that lack of accounting knowledge, required more cost, waste of time, more labor intensive. Even for those respondents who prepare accounting records the main constraint faced with them for proper accounting record is lack of accounting knowledge. Therefore, the researcher recommended that the concerned governmental institutions Debre Berhan University, North Shewa zone small and micro enterprises office and north shewa zone TVET colleges arrange training `sessions for those enterprises.
VL  - 8
IS  - 2
ER  -

Copy | Download