APPLICATION OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES IN COMBATING SMALL BUSINESS FAILURES IN NIGERIA

Strategic management accounting (SMA) is concerned with the provisions, application and review of accounting information by the management of an entity with the aim of making business decisions that would create a competitive edge in the market and control the firm’s activity with the aim of achieving profitability. The aim of this study is to investigate if the application of SMA techniques among small businesses in Nigeria can combat business failures prevalence. The study obtained data from fifty (50) small business owners in Nigeria through a cross-sectional questionnaire survey approach through the local chambers of commerce. The findings from the hypotheses tested show that apart from macro-economic challenges, most small businesses do not use SMA techniques in their decision making process instead the simple traditional management accounting techniques are used despite its obvious flaws. The findings showed that there is no relationship between strategic management accounting and small business performance/failures. This study would be of benefit to government, researchers and small business owners as it would provide a guideline upon which decisions regarding small business performance are to be made. Based on the findings, the study concludes that despite institutional lapses the use of SMA techniques would be a veritable tool for the survival of small businesses in Nigeria.