Impact of accounting information on entrepreneurial decision making process

  • Akande, Olusola O. Department of Management and Accounting, Faculty of Management Sciences LadokeAkintola University of Technology, Ogbomoso, Oyo State, Nigeria


Appropriate decision making is a success, sustainability and growth factorof every enterprrise. The study evaluated the effect of accounting information on entrepreneurial decision making process among small entrepreneurs in Ogbomoso metropolis, Oyo State, Nigeria. Structured questionnaire was used to collect primary data from 120 randomly selected respondents. Simple regression analysis was used to analyze the data collected with the aid of Statistical Package for Social Sciences (SPSS) in order to evaluate the effect of independent variable (accounting information) on dependent variable (decision making). The result revealed that the use of accounting information has significant effect on the decision making process of entrepreneurs. The predictor variable (accounting information) was 69% variance of entrepreneurial decision making process. It was, therefore, recommended that small enterprise operation in Ogbomoso should embrace accounting information in order to thrive.


Adewoye, J.O. and Akanbi, T.A. (2012), Role of Information and Communication Technology Investment on the Profitability of Small Medium Scale Industry, Journal of Emerging Trends in Economics and Management Sciences, 3 (1): 64-71. Akande, O.O. (2010), Performance Impact of Entrepreneurial Skills on Small Businesses in Lagos State, Nigeria. An Unpublished Ph.D Thesis Presented to the Department of Management and Accounting, Faculty of Management Sciences, LadokeAkintola University, Ogbomso, Nigeria. Akande, O. O. (2012), Accounting Skill as a Performance Factor for Small Businesses in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2(5), 372-378.

Akande, O. O. (2011). Accounting Skill as a Performance Factor for Small Businesses in Nigeria, Journal of Emerging Trends in Economics and Management Sciences, 2 (5): 372-378. Ariyo, A. (2007), Accounting Predictions of Corporate Performance in Nigeria, Zacc Ososanya Trust Fund,Accounting Research Series, OOU, Ago-Iwoye.

Arinaitwe, J.K. (2006), Factors Constraining the Growth and Survival of Small Scale Businesses,

A Developing Countries Analysis, Journal of American Academy of Business Cambridge, 8 (2): 167-178. Aruwa, S.A.S (2004), The Business of Entrepreneur, A Guide to Entrepreneurial Development. Journal of Development of Business Administration, University of Ilorin, 2 (1): 112-122. Augustine, M., Maureen, K.M. and Jian, Z. (2014). Impact of Accounting Information on Profitability of Small Scale Businesses: A Case of Kampala City in Uganda, International Journal of Academic Research in Management, 3 (2): 185-192. Cole, A.H. (1942): Entrepreneurship as an Area of Research, the Task of the Economic History Cambridge: Harvard University Press. Collin, D. (2004). Cost and Management Accounting, 6th Edition, London: Thomson Learning. Cushing, R. and Romney, A. (1984), Accounting Information System, Wisley Publishing Company, City of Publication, USA. David, H.L. (1983), Accounting Information System: A Control, A Control Emphasis, Home Wood Ilinois: Richard D. Irwin. Ekpenyong, D.B. (1982), “Problem of Small Businesses and Why They Fail†The Journal of General Studies, 3 (1): 102-125.

Essien, O.E. (2001), “The Role of Development Finance Institutions (DFIs) in the Financing of Small Scale Industries (SSI), Central Bank of Nigeria Publication, September, 25 (3). Kamukama, A.N. (2006). Cost and Management Accounting, 1st Edition Leonard, A.R. (1986). Accounting Information System: A Cycle Approach, 2nd Edition, Harper and Row Publishers, New York. Mensah, J.V., Tribe, M. and Weiss, J. (2007), Ghana: A source of dynamism or of subsistence income? Wiley Inter Science. Journal of International Development, 3 (2) 127-138. Mohd, A.H. and Mohamed, D.I. (2013). The Role of Accounting Services and Impact of Small Medium Enterprises (SMEs) Performance in Manufacturing Sector from East Coast Region of Malaysia: A Conceptual Paper, Procedia-Social Behavioral Sciences, 115 (2014), 54-67.

Muhammad, T and Andow, A.H (2010), The Impact of Entrepreneurial Skills Developemnt Programmes on the Performance of Women Entrepreneurs in Kaduna State, Nigeria, Pp. 1-22. Nkundabanyanga, K. (2004), Advanced Accounting: A Practiced Approach, 1st Edition: John H.J. 1987, Business Contemporary Concepts and Practice, 9th Edition, Prentice Hall International (UK) Ltd London.

Nwaigburu, K.O. and Eneogwe, V.N. (2013), Impact of Accounting Skills on Entrepreneurship Education for Self-Reliance and Sustainable Development: A Study of Selected Small Scale Business in Owerri Municipal, Imo State, Mediterranean Journal of Social Sciences, 4 (16): 81-88. Okoli, B.E. (2011), Evaluation of the Accounting System Used by Small Scale Enterprises in Nigeria, The Case of Enugu, South Eastern Nigeria, Asian Journal of Business Management, 3 (4), 235-244. Okoli, M.A. (2012). The Use of Accounting Information as an Aid to Management in Decision Making, British Journal of Science, 5 (1): 204-213. Oladejo, M.O. (2008), “Micro Business and Entrepreneurship Development: Explanatory Accounting Procedureâ€, in Proceedings of International Conference on Soio-Economic Policies and MDGs in Africa, Faculty of Management Sciences, AAU, Akungba Akoko, Ondo State, pp. 366-372 Ree, E. (2001), Roundtable on Entrepreneurship Education for Engineers, (October 25th-27th) Stanford Technology Ventures Programme.

Soudani, S.N. (2012), The Usefulness of an Accounting Information System for Effective Organizational Performance, International Journal of Economics and Finance, 4 (5), 119-130.