Effect of Financial Safety on Productivity of Small and Median Enterprises (SMEs) In Ebonyi State
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- September 11, 2023
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Prof. Fred. O. Eze1*; Njoku, Kingsley Kelechi2; Mbah, Paulinus Chigozie3
1Department of Public Administration, Enugu State University of Science and Technology, Enugu
23Department of Business Administration, Enugu State University of Science and Technology, Enugu
ABSTRACT
The study evaluated the effect of financial safety on the productivity of small and Median Enterprises (SMEs) in Ebonyi State. The specific objectives were to: examine the effect of reductions of debts on output and evaluate the effect creating a well-funded savings account on turnover of SMEs in Ebonyi State. The population of the study was two hundred and sixty-five (265) staff of five (5) selected SMEs in Ebonyi state. The whole population was used due to small number. The study used the descriptive survey design approach. The primary source of data was the administration of questionnaire. 205 staff returned the questionnaire and accurately filled. Data from the questionnaire was administered and analyzed using simple percentages, mean and standard deviation, and the hypotheses were tested using Pearson correlation (r). The findings indicated that Reduction of debts had significant positive effect on the output of SMEs in Ebonyi State, Z (5.710 < 10.896, p <.05). Creating a well-funded savings account had significant positive effect on turnover of SMEs in Ebonyi State, Z (6.059 < 7.595 p <.05). The study concluded that reducing of debts and creating a well-funded savings account had significant positive effect on output and turnover of SMEs in Ebonyi State. The study recommended among others that the management of the SMEs should have debt reduction plans tend to improve consumer’s debt position and facilitate their financial condition.
Keywords: Financial Safety; Productivity of Small and Median Enterprises (SMEs); Reductions of Debt; Well-Funded Savings Account
Citation: Eze, F. O., Njoku, K. K. & Mbah, P. C. (2023). Effect of Financial Safety on Productivity of Small and Median Enterprises (SMEs) In Ebonyi State. European Journal of Finance and Management Sciences 7(3), 62-76. DOI: https://doi.org/10.5281/zenodo.8333708
Copyright: © 2023 The Authors. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.