The Strategic Role of Financial Record keeping in the Development of Small and Medium Scale Enterprises in Nigeria

This study investigates the role of record-keeping in the development and sustainability of small and Medium Scale Enterprises in Agbor, Delta State, Nigeria. Despite their significant contribution to the local economy, many small businesses in Agbor face challenges that hinder their growth and sustainability, largely due to inadequate recordkeeping practices. The research adopts a descriptive survey design, with a sample of 100 small business owners across various sectors, including agriculture, retail, and manufacturing. Data were collected using a structured questionnaire and interview guide, with descriptive statistics employed for analysis. The study reveals that the majorities of smallscale enterprises in Agbor maintain essential records such as financial records, inventory records, and sales transactions, although many businesses still rely on manual or paper-based methods. Effective record-keeping was found to positively influence business growth, including access to financing, better decision-making and long-term sustainability. However, common challenges such as lack of skills, time constraints, and inadequate resources were identified as significant barriers. To improve record-keeping practices, the study recommends strategies such as training programs, adoption of digital tools, and professional assistance. These findings underscore the need for business owners, policymakers, and development agencies to recognize the critical role of proper record-keeping in enhancing the performance and sustainability of SSEs in Agbor.