Poor record keeping, killing SMEs - Report

daily activities, most banks are unwilling to lend to them.

He said, “Lack of financial information discourages these banks from trusting that the business is taken seriously.”

He noted that these businesses hardly expand as they can’t acquire loans for expansive projects.

An SME operator in events planning in Abuja, Josephine Sule who spoke to YOUTHVILLE said appropriate record-keeping system can determine the survival or failure of a new business.

The Economics graduate of University of Abuja said for an already existing business, good record-keeping system can increase the chances of staying in business.

She said although she runs her daily business herself, she still insists on keeping account of her itineraries as it is the only way her business is going to grow and prosper.

Another

entrepreneur

in Abuja, Matthew w Ezekiel who runs ns a dry ry cleaningg shop said most ost SMEs find ind it difficultcult to access cess loans from rom banks becausee they do not keep financialal records..

“Most SMEs are managed by owners, and so they believe they have less need for keeping the records and financial accounting of their day to day running of the business,” he said.

Ezekiel said at inception, he sought for loans from banks but his business proposal wasn’t good

enough for the bank to approve his loan until he hired someone who wrote him a good business proposal.

“I got the loan of N1million, but was not handed to me direct, the financial institution paid for my washing machines, generator, and also my rent. This is my third year and I will soon finish paying back.” Ezekiel said.

The entrepreneur said most banks rely on information given by the SMEs owners before making the decision to invest or not to invest in the business and if their records do not add up they simply move to someone whose business has a better record.