ABSTRACT

The study investigated the relationship between financial management practices and growth of Micro, Small, and Medium Enterprises (MSMEs).Thecasual (explanatory)researchdesignwasadoptedforthisstudy.   MSMEs in Oredo Local Government of Edo State was adopted for the scope of this study. The datausedinthestudywereobtainedfrom a primary source (questionnaire).TheresearchemployedPost-regression analysis including; Descriptive Statistics, Correlation Analysis, and a Normality Test. Furthermore, Ordinary Least Square regression analysis was carried outand they included; (a) test for multi-collinearity using the Variance Inflation Factor (VIF)technique(b)atestforhomoscedasticityusingtheBreusch-Pagan/Cook-Weisberg testmodule.

Financial management practices were proxy by Bookkeeping Practices, Working Capital Management, and Financial Planning. The findings of the post-regression analysis revealed that financial management practices as proxy by Bookkeeping Practices (BKPR) had a positive significant effect on the growth of MSMEs (GRWT); Working Capital Management (WKCM) had an insignificant effect on the growth of MSMEs (GRWT)); and Financial Planning (FINP) had a positive significanteffect on the growth of MSMEs (GRWT).

Thestudyconcludesthat bookkeeping practices and financial planning are crucial resources to exploit for the growth of MSMEs in Oredo L.G.A. and MSME owners must exercise control over internal limitations to business growth.The study herebyrecommends that MSMEs’ owners/managers in Oredo L.G.A. should employ best bookkeeping practices and support the continuous improvement in personnel’s core competencies and skills; financial planning should be a priority as this will spur business growth and enhance the reputation of the business entity; and the state government and federal government should provide adequate infrastructure for owners/managers of MSMEs in Oredo L.G.A. as well as implement policies to reduce the external limitations of businesses thereby boosting the Nigerian economy.