Strategic Financial Management Practices and Sustainability of Small and Medium Enterprise in Osogbo Metropolis, Nigeria

Abstract

The study aimed to examine the effect of strategic financial management practices on the sustainability of SMEs in Osogbo metropolis, Nigeria.  The study employed a descriptive survey research design. The population of the study was 2,273 registered SMEs in Osun State. The sample size of 333 SMEs was selected using Krejce and Morgan sample table to determine the sample size. Questionnaire used was validated and the reliability revealed coefficient value of 0.81 through the crombach reliability test. The statistical method used was Kolmogorov-Smirnov^a and Shapiro-Wilk normality test and correlational analysis to test the research hypotheses. The statistical tool used for the study was SPSS. The findings revealed the following; CB: (N= 333, r = -.398, P=0.000 < 0.05); FS: (N=333, r = -.171, p = 0.002 < 0.05); and ID: (N=333, r = -.334, p = .000 < 0.05); thus, all the null hypotheses are rejected. Therefore, the study concluded that strategic financial management practices have a significant effect on the sustainability of SMEs. The implication to this study was that the it contributed to knowledge by establishing the effect of strategic financial management practices on the sustainability of SMEs in Osogbo metropolis, Nigeria. It therefore recommended that government and SMEs stakeholders should maintain the approach used in sustaining the SMEs for the improvement of the state economic growth.

Keywords: Strategy, Financial Management, Management Practices, Sustainability and SMEs