Financial Management Practices and Financial Performance of Small and Medium Enterprises: A Study of Lagos State, Nigeria.

This study investigated the impact of financial management practices on the financial performance of small and medium enterprises (SMEs) in Lagos State, Nigeria, addressing a critical gap in the literature concerning the influence of investment appraisal techniques, financial assessment, capital structure decisions, dividend policy, and working capital policy on SME efficiency. Adopting a quantitative research design, the study utilizes primary data collected through structured questionnaires from 200 SMEs selected from the Lagos Business Directory. Findings from the study indicate that financial management practices significantly influence SME financial performance in Nigeria. The study concludes that the adoption of robust financial management strategies is vital for improving the financial health and longevity of SMEs in Nigeria. It recommends that SME owners enhance financial literacy, implement structured financial systems, and seek capacity-building opportunities.