Effect of Mental Accounting on the Growth and Development of Small and Medium-scale Enterprises in Nigeria
- Post by: deqe
- September 12, 2022
- Comments off
ABSTRACT
This study examined the effect of mental accounting on the growth and development of small and medium enterprises in Nigeria. The study seeks to investigate the effect of transaction utility, categorization process, and choice bracketing on the growth and development of small and medium enterprises. The study adopts a cross-sectional survey. Data were collected using a self-developed questionnaire. To ensure reliability, the questionnaire was pre-tested on 20 respondents. This study assumed a reliability coefficient (Alpha value) of more than 0.7 to reflect acceptable reliability. Two methods of analysis were adopted for the data analysis. One method consists of the use of simple descriptive analytical tools such as simple percentages. The second method shall be the test of the hypothesis using the X2 (chi-square) non-parametric statistical tool. The result revealed that transaction utility has a significant positive effect on the growth and development of small and medium enterprises (X2 = 25.00 at a 5% significant level). While categorization process has a significant positive effect on the growth and development of small and medium enterprises (X2 = 17.42 at 5% significant levels). And Choice bracketing has a significant positive effect on the growth and development of small and medium enterprises (X2 = 12.82a at a 5% significant level). we concluded that mental accounting has a significant positive effect on the growth and development of small and medium enterprises in Nigeria. We recommended that government should endeavor to make policies to support the growth and development of small and medium enterprises.
Keywords: Development; Growth; Mental Accounting; Small and Medium-scale Enterprises
Authorship
1Leonard Uwadiegwu Olife 2Ozioko, Anastasia Chinonye and 2Ukwueze, Thaddeus