| Summary, etc |
For both developing and developed economies, small and medium sized firms play substantial<br/>roles in the process of industrialization and economic growth. The contribution of small and<br/>medium-sized enterprises (SMEs) has been recognized as the primary support of the economy<br/>because of their ability to boost the production of the economy and improve human<br/>welfare.Small companies in Nigeria, however, were unable to add value to the economy because<br/>of many problems facing their activities. Issues arising from bad funding of small and mediumsized enterprises include lack of skilled leadership resulting from the failure of owners to hire<br/>expert services; use of outdated machinery and manufacturing techniques due to the failure of<br/>owners to access fresh technology; and excessive competition resulting from revenues resulting<br/>from sales.This objective of this study was to identify the effect of budgetary control on the<br/>financial performance of SMEs in Lagos State. Using survey research design, the study comprise<br/>of the population of 492 SMEs operating within the Ikeja Local Government Area of Lagos state<br/>while the population was sampled using the simple random sampling technique. From the study,<br/>142 out of the 221 sample respondents filled-in and returned the questionnaires making a<br/>response rate of 64.25%. This was analysed using the Statistical Package for Social Sciences<br/>(SPSS 22) using descriptive statistics. Independent variables that was used to measure budgetary<br/>control included budget planning, budget monitoring and control, and budget evaluation and<br/>dependent variable was financial performance. Mean and Standard Deviation within a range of<br/>five points was used to measure all the independent variables. The data was subjected to Linear<br/>Regression Analysis to test the research hypotheses. The probability level was set up at 0.05<br/>significance. The result of the Linear Regression Analysis hence indicates thatbudget planning<br/>has a significant relationship with financial performance of Small and medium-sized enterprises<br/>in Lagos State (p value =0.000<0.05), budget monitoring and control has a significant<br/>relationship with financial performance of Small and medium-sized enterprises in Lagos State (p<br/>value=0.000<0.05), budget evaluation has a significant relationship with financial performance<br/>of Small and medium-sized enterprises in Lagos State (p value=0.000<0.05). The study<br/>concluded that financial performance increases proportionately with more inclusive using of<br/>budget. This study however recommends that managers and owners of SMEs should hold budget<br/>conferences and meetings regularly to review performance. Furthermore, the study also<br/>recommends that organizations should develop more formal practice in the development of<br/>budgetary controls, that is, Planning, Monitoring and Control and budget evaluation.Overall, the<br/>study indicated that budgetary control contribute to the financial performance of SMEs in Lagos<br/>State. |
