Effect of Small-Scale Agribusness Characteristics on the Utilization of Financial Records in Nasarawa State, Nigeria

The study investigates the effect of small-scale agribusiness enterprise characteristics on the utilization of financial records in Nasarawa State, Nigeria. Specifically the study described the characteristics of the agribusiness enterprises, determine the effect of enterprise characteristics on financial records utilization and to examine the challenges of utilizing financial records. One hundred and thirty eight (138) small-scale agribusiness enterprises were selected through multi-stage and purposive sampling procedure and a well structure questionnaire was used to collect primary data. Simple percentage, multiple regression as well as factor analysis were utilized to analyze the data. The finding revealed that, majority (98.6%) of the enterprises were private owned while few (1.4%) were public owned with most of them (32.6%) into processing. It was also observed that majority of the enterprises (82.6%) were registered but majority do not have access to credit facilities (52.9%). The annual income of the enterprises shows a mean income of (₦4,036,958.52). It was also observed that majority of the enterprises utilized financial records for the purpose of profit margin determination and cost control. The result of multiple regression shows that years in business, level of income and competent employees were the major determinants of the choice and utilization of financial records keeping among agribusiness enterprises in the study area. The factors that hindered the utilization of financial records were accounting compliance factors, institutional and operational factors, financial and administrative factors, as well as economic and educational factors. It was recommended that agribusiness enterprises should seek basic knowledge of records keeping and hire the services of professionals for proper record keeping.