Financial Management Practices on the Sustainability of Small and Medium Enterprises (SMES) in Cross River State

This study investigated the impact of financial management practices on the sustainability of small and medium enterprises (SMEs) in Cross River State, Nigeria. Specifically, two research objectives and corresponding questions were developed, alongside two hypotheses tested at the 0.05 level of significance. The study focused on a population of 180 SMEs operating in the northern part of Cross River State, particularly within the local government areas of Obudu, Ogoja, Yala, Bekwarra, and Obanliku. A survey research design was adopted, and data were collected through a structured questionnaire titled "Impact of Financial Management Practices on the Sustainability of Small and Medium Enterprises Questionnaire (IFMPSSMEQ)." . The research questions were analyzed using mean and standard deviation, while simple linear regression was employed to test the hypotheses. The findings revealed that financial management practices—particularly budgeting and cash flow management—have a significant impact on the sustainability of SMEs in the region. Based on the results, it is recommended that SMEs enhance their cash flow management by consistently monitoring inflows and outflows and maintaining adequate cash reserves. This will help ensure liquidity and minimize financial risks, thereby promoting long-term sustainability. Received: 22 April 2025 / Accepted: 27 June 2025 / Published: 15 July 2025