THE EFFECT OF FINANCIAL MANAGEMENT PRACTICE ON THE PROFITABILITY OF SMALL AND MEDIUM SCALE ENTERPRISES IN MAIDUGURI, BORNO STATE

ABSTRACT The study assessed the Effect of Financial Management Practice on the Profitability of Small and Medium Scale Enterprises in Maiduguri, Borno State. Three objective sand three-research questions were formulated for the study. A hypothesis was set to test the study. The study utilizes both primary and secondary sources. The researcher adopted a stratified proportionate sampling technique. SMESs were first stratified into sectors; Service, Retail/Wholesale, Manufacturing and Agribusiness. Both primary and secondary data as used, which was collected using self-administered questionnaires to the sampled respondents who comprised of the bank owners or managers/employees. Quantitative data were analyzed and summarized using means, mode, frequencies and percentages. The analyzed data were then be presented in tables from which statistical inferences as well as necessary recommendations were made. The result of the study shows that small-scale enterprises contribute positively to the economic development of Nigeria. They provide employment to large number of unskilled and semi-skilled people in our society thereby solving the ugly problem of unemployment facing the nation today. Furthermore, their activities in the rural and urban centres help in the development of the society. As a result of employment opportunity they provide to the populace, the standard of living of the people is on the rise. Based on the findings of the study it is recommended that government should intensify its efforts in reforming and stabilizing the power sector so as to put an end to the energy crisis and epileptic power supply in the state and country at large.