“FINANCIAL MANAGEMENT AND REPORTING PRACTICE IN MICRO AND SMALL ENTERPRISES THE CASE OFADDIS ABABA LEDETA SUB-CITY”

Abstract

Financial management is indispensable for all companies because having, reaching and analyzing financial information is a vital issue for all successful businesses. This study was conducted with an objective of identifying practices of financial management and reporting at MSE in Lideta Subcity in Addis Ababa. From this broad objective the study has assessed practices of financial management, reporting and bookkeeping, and methods and basis of account recording in the enterprises. To meet these objectives the study has targeted employees with role of financial management and reporting. There are 1,475 MSE in the Subcity and thus 1,475 target population. Sample size for the study was determined by using Carvalho (1984) and set to be 200 samples. Respondents for the study were randomly selected by using list of MSE as sampling frame. From the employees, data for the study was collected by using questionnaires and interview and then analyzed by using descriptive statistics. Based on the findings the study concludes that financial management and reporting practice of most of micro and small scale enterprises found very poor and needs many improving activities.