ABSTRACT
This study sought to investigate the use of financial information in management decision making processes by SMEs in the Kumasi Metropolis. This study examines the existing literature to find the contribution of financial information in making organisational and managerial decisions. The literature review suggests that the use of financial information in decision making depends on the owners’ attitude and their level of financial literacy skills. A qualitative approach was adopted to investigate what financial information is used in making business decisions and the barriers the small business owners face in operating their businesses. A questionnaire and semi-structured interviews were used to collect primary data from some selected small business owners. The study found that majority of participants were not aware of the critical business decisions which were significant for the success of their businesses. The low level of financial literacy skills in the participants resulted in the use of individual practices for measuring business performance and making business decisions. Internal and external barriers were the two main types of barriers preventing participants from accessing financial information. Internal barriers included impediments emerging from the internal business environment such as participants’ lack of financial, managerial and IT skills. External barriers comprised barriers beyond the participants’ control. These barriers can be overcome by the following recommendations. The level of financial literacy skills can be improved by educating and providing training to small business owners about published financial management practices. External accountants need to evaluate the financial management needs of their clients and assist them in understanding the benefits of this information. The accountants also need to encourage the owners to implement a computerized accounting system for better financial management.
DAPAAH, H (2021). AN INVESTIGATION INTO THE USE OF FINANCIAL INFORMATION IN DECISION MAKING PROCESSES AMONG MANAGERS OF SOME SELECTED SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN THE KUMASI METROPOLIS, GHANA. Afribary. Retrieved from https://afribary.com/works/an-investigation-into-the-use-of-financial-information-in-decision-making-processes-among-managers-of-some-selected-small-and-medium-scale-enterprises-smes-in-the-kumasi-metropolis-ghana
DAPAAH, HENRY "AN INVESTIGATION INTO THE USE OF FINANCIAL INFORMATION IN DECISION MAKING PROCESSES AMONG MANAGERS OF SOME SELECTED SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN THE KUMASI METROPOLIS, GHANA" Afribary. Afribary, 27 Mar. 2021, https://afribary.com/works/an-investigation-into-the-use-of-financial-information-in-decision-making-processes-among-managers-of-some-selected-small-and-medium-scale-enterprises-smes-in-the-kumasi-metropolis-ghana. Accessed 18 May. 2024.
DAPAAH, HENRY . "AN INVESTIGATION INTO THE USE OF FINANCIAL INFORMATION IN DECISION MAKING PROCESSES AMONG MANAGERS OF SOME SELECTED SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN THE KUMASI METROPOLIS, GHANA". Afribary, Afribary, 27 Mar. 2021. Web. 18 May. 2024. < https://afribary.com/works/an-investigation-into-the-use-of-financial-information-in-decision-making-processes-among-managers-of-some-selected-small-and-medium-scale-enterprises-smes-in-the-kumasi-metropolis-ghana >.
DAPAAH, HENRY . "AN INVESTIGATION INTO THE USE OF FINANCIAL INFORMATION IN DECISION MAKING PROCESSES AMONG MANAGERS OF SOME SELECTED SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN THE KUMASI METROPOLIS, GHANA" Afribary (2021). Accessed May 18, 2024. https://afribary.com/works/an-investigation-into-the-use-of-financial-information-in-decision-making-processes-among-managers-of-some-selected-small-and-medium-scale-enterprises-smes-in-the-kumasi-metropolis-ghana