Financial Management Practices and Performance of Women Entrepreneurs in Nigeria

Abstract

The nexus between financial management practices and women entrepreneurship development is crucial to entrepreneurial success. This study examined the relationship between financial management practices and performance of women entrepreneurs in Nigeria. Stratified and simple random sampling techniques were adopted to select 348 women entrepreneurs from the population of 2700 who were registered in their respective associations. Tables, percentages and charts were used to analyse the data. Spearman Rank Correlation Analysis was employed to test the hypothesis. Findings indicated that majority (82 percent) of the women entrepreneurs do not keep accounting records and often spend their business funds on expenses that are not related to their businesses. Also, the perception that record keeping is a tool of oppression is very rife among the women entrepreneurs. This has contributed significantly to their exposure to lapses, perceived misappropriations and reported losses which affect their performances adversely. However, the result of the Spearman rank correlation indicated that financial management practices correlated positively and significantly (p<0.05) with the performance of women entrepreneurs. This indicated that the more efficient the financial management practices of women entrepreneurs, the better their performances. The study on the basis of the findings concluded that women entrepreneurship development depends largely on good financial management practices. It is therefore recommended that women entrepreneurs should take cognizance of these practices in order to enhance their performances.