Place of Accounting Education in Entrepreneurial Success in Nigeria

Abstract

This study examined the contribution of accounting education to entrepreneurial success in Nigeria. The research identified business success factors as well as business obstacles, and ascertained the impact of accounting knowledge/skills on the competitive ability of the entrepreneurs in the South-east of Nigeria. Ex-post facto, and survey design were used for the study. The population was drawn from members of the National Association of Small Scale Industries (NASSI) in the South-east of Nigeria that registered with Corporate Affairs Commission (CAC). The sample size was obtained using Bill Godden’s method of sample size determination. Data were collected by means of questionnaire. Three hundred and ninety (390) questionnaire were administered to the two groups of the respondents, thereby making it a total of 780 questionnaire. Personal interview was equally used for data collection. Data were also extracted from the financial records of the organisations. Tables, charts, and percentages were used in data presentation and analysis. Z – test statistic was used to test hypothesis 1, hypotheses 2 and 4 were tested using analysis of variance (ANOVA), while hypothesis 3 was tested using multiple regression model. The result showed z-value of 8.659 (p = 0.000 < 0.05) for average annual turnover and z-value of 3.936 (p = 0.000 < 0.05) for average annual profit, both results indicating that there is a significant difference between business success level of entrepreneurs that acquired accounting knowledge/skills and those that do not acquire accounting knowledge/skills. The result also showed F – value of 0.008 < Fcritical of 4.35 and p(0.931) > 0.05 revealing that there is no significant difference in perceived business success factors between entrepreneurs with accounting background and their counterparts that do not have accounting background. The study equally revealed (F(2,777) = 30.005, p < 0.05, with an R2 of .67 showing that there is a positive significant relationship between competitive ability and accounting knowledge/skills. Moreover, the result of the study showed (F(1,20) = 17.569, p < 0.05 indicating a significant difference in perceived business obstacles between entrepreneurs with accounting background and their counterparts that do not have accounting background. The study provides an insight into accounting education indispensable role/value in entrepreneurial success and sustainability in Nigeria. It has shown that competitive ability of an entrepreneur significantly depends on the effective application of accounting knowledge/skills which ultimately results in business success. The study therefore recommends that organisations should deliberately imbibe the culture of maintaining adequate financial information. Also, clear accounting rules and steps in data recording should be established and adequate monitoring of the implementation and adherence to the policies should be ensured.