Percentage responses lack of accounting cost and time

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Entrepreneurial Finance
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Chapter 15 / Exercise 2
Entrepreneurial Finance
Leach/Melicher
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Percentage responses Lack of accounting knowledge 53 63 Cost and time constraints 18 22 Fear of discouragement in case of loss 13 15 Total 84 100 Source (Survey data 2012) Table 4.6 shows that the majority of MSEs (63%) attributed the challenges they faced in keeping proper accounting records to lack of accounting knowledge, 22% of MSEs indicated cost and time constraints as challenges while 15% cited fear of discouragement in case of a loss in their business as contributing to challenges they faced in keeping proper records. The reasons given by the respondents as to why they don’t p ractice recordkeeping in their enterprises are not unique to Kenya. Lack of accounting knowledge on the part of the managers or the owners of MSEs has been cited in various studies in the world ((Everaert et al. (2006). Cost and time constraint is an obvious reason given by many business owners but researchers and scholars have emphasized the business operators should persevere and keep records of their business transactions for the purpose of efficient management (King and McGrath, 2010; Mitullah, 2003) 4.4 Attitude of MSEs Operators towards Recordkeeping The fourth objective of this study was to find out the attitude of the MSEs operators towards recordkeeping in their enterprises. Accordingly the respondents were asked to disagree, agree or state that they don’t know about some statements concerning their attitudes towards the record keeping. The results were as presented in Table 4.5
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Entrepreneurial Finance
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Chapter 15 / Exercise 2
Entrepreneurial Finance
Leach/Melicher
Expert Verified
35 Table 7: Attitudes of MSEs Owners/Managers towards bookkeeping Statements Frequency & Percentages Agree Disagree Don’t know Bookkeeping is vital to my business 72 (86%) 0 (0%) 12 (14%) Some business eg Micro entities do not require recordkeeping 10 (12%) 64 (76%) 10 (12%) Record keeping for business is tedious and less fruitful 6 (7%) 76 (90%) 2 (2%) I would appreciate if given opportunity to learn about accounting 78 (93%) 0 (0%) 6 (7%) My business can be successful even though I don’t keep records of its operation 12 (14%) 67 (80%) 5 (6%) Source (Survey data 2012) From Table 4.7 it is evident that majority of the Owners-managers (93%) would love to be trained in accounting. Moreover 86% of them believed that bookkeeping practice is vital for their businesses. Fourteen percent (14%) of the entrepreneurs however believed that their businesses would do well even if they don’t keep accounting records. twelve percent (12%) of them stated that some business and especially the Micro enterprises do not require bookkeeping while only 7% of the entrepreneurs argued that the practise of record keeping in business is tedious and less beneficial. From the result presented in Table 4.5, it is evident that the respondents were having positive attitude towards recordkeeping. Ninety three (93%) of the respondent were willing to be further trained in the recordkeeping. The responses that some businesses do not require recordkeeping could be said to have emanated from this lack of enough knowledge of recordkeeping. According to Otenyo-Matanda (2008) most of the MSEs general lack this knowledge.
36 4.5

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