Chinhoyi University of Technology: School of Business Sciences and Management Department of Business Management
Chinhoyi University of Technology: School of Business Sciences and Management Department of Business Management
Chinhoyi University of Technology: School of Business Sciences and Management Department of Business Management
RESEARCH PROPOSAL
DONE BY
Thus this chapter will outline the background of the problem under study, describe the
problem statement, pose research questions and show aims of the study. Also contained in
this section are the assumptions, limitations and delimitation of this research paper and the
significance of study.
Despite the fact that SMEs are receiving support from the government, Banks, Monetary
Fund Institutions (MFIs) and Non-Governmental Organizations (NGOs) and some institution
most of them are still struggling. Therefore this research seeks to identify the importance of
record keeping on the performance of the Small-Medium enterprises (SMEs) in Zimbabwe
during the period 2000-2017. More so proposing that record keeping is one of the solutions to
SMEs performance. Therefore this study seeks to explore the importance of record keeping
on the performance of Small to Medium enterprises
A number of Small businesses collapse within the first five years of their existence.
Numerous factors have been acknowledged for contributing to this premature death of SMEs
namely, poor financial management/performance, inability to separate business and family or
personal finances, poor decision making, lack of access to loans, inability to distinguish
between revenue and profit, lack of a business strategy and stunt growth. This may be traced
to poor financial record keeping. Lack of records in these businesses which could be due to
poor educational background of owners or the employment of unskilled bookkeeping staff.
Germain (2010) supports that lack or poor record keeping in small businesses leads to their
collapse. Thus an understanding of the need for record keeping in small businesses may help
to identify a solution to their challenges.
(i) To determine the types of records the SMEs keep in their business operations,
(ii) To establish the challenges faced by the SMEs in maintaining their records.
(iii) To analyse the extent to which recordkeeping supports the performance of the SMEs
i. What type of records do the record-keepers of SMEs use for their business
operations?
ii. Which challenges do SMEs face in maintaining their records?
iii. To what extent does recordkeeping support the performance of the SMEs
To the SMEs
This study will be beneficial to the small-to-medium enterprises (SMEs); as it helps them
acquire book keeping skills and how to use the skills to their advantage to ensure they
achieve their goals.
To the Economy
2. Creation of Employment
Through establishment of the accounting department after acknowledging its value many
small firms will create vacancies leading to the creation of employment that leads to
improved living standards and alleviation of poverty.
To the university
The college will benefit from the research, mainly its library archives with literature related
to the factors that affect success of SMEs or the importance of record keeping in SMEs. It
will also assist other student who intend on researching on the topic.
To the student
The relevance of this research project is that it will enable the candidate to demonstrate
competence in the ability to organize oneself to carry out an assignment and effectively use
research techniques and to bridge the gap between theory and practice by developing and
undertaking of how to apply concepts and techniques obtained from this course.
1.7 Hypothesis testing
Ho: Record keeping has no significant impact on the performance of small and medium scale
enterprises.
H1: Record keeping has a significant impact on the performance of small and medium scale
enterprises
1.8 Delimitation
The Information in this study will be obtained from small-to-medium scale entrepreneurs in
Harare urban. In this regard Harare urban is the geographical area from which data is
collected. This study seeks to analyze the importance of record keeping by SMEs. Thirty
industries are targeted from the study and the records they keep are examined in order to
obtain information pertaining to the investigation on the importance of record keeping.
1.9 Limitations
LITERATURE REVIEW
2.1Conceptual Framework
The conceptual framework reflects the interaction between business practice factors such as
recordkeeping thus enabling business performance.
Record keeping
Skills in Business
management Practice of record Performance of SMEs
keeping by the SMEs
Availability of
record keeping
resources
Principle of record period assigning this principle shows that each Records Created in the
Organization should have a period of time that it should be kept before being destroyed or
thrown away. Thus it makes it makes the easier for the retrieval of such Records.
Invoices and other related primary documents are evidence of the occurrence of a transaction
and can be retrieved when disputes arise. Maseko and Manyani (2011) emphasizes the
importance of the documents by stating that these are legal documents that show the terms of
agreement. A sales invoice for example would show the description, quantity and price of
products sold as well as the name of the buyer and date of transactions arises, for example
failure to settle an amount on the invoice, these documents can bear witness on the case. In
small businesses where some customers may be forced into liquidation because of the harsh
economic climate prevailing, amounts to be received can be obtained from records of the
transactions.
In essence it is the record that can gives answers to the questions. The final accounts can only
be obtained from the records. Some small businesses operate blindly without checks and
balances and would only discover their bad state when it’s too late. As long as records are
there, progress can be monitored continuously, and corrections made earlier Commonwealth
of Australia (2010).
3.0 RESEARCH METHODOLOGY
Chimanikire R (2011) views research design as the arrangement and structure of investigation
so considered as to acquire answers to research questions. Aremu, M. A., & Adeyemi, S. L.
(2011) outline three types of research outlines to be specific, exploratory, descriptive and
casual research. The study was done as an engaging review which utilizes both quantitative
and qualitative approaches. Chimanikire R (2011) portrays a review as being helpful in
investigating connections.
3.3 Population
The population was included of 80 people in Harare. These people were selected depending
on the type of business that is Retail shops and small scale producers with identification
numbers
Mcphail (2001) defines sampling as a process of selecting a few (a sample) from a bigger
group to become the basis for estimating or predicting a fact, situation or outcome regarding a
bigger group. As Saunders et al (1997) put it, whatever one’s research questions or objectives
there will arise a need to collect data to answer the questions or objectives but it is often
impractical for a researcher to survey the entire population hence the need for samples.
Wegner, (1993) and Ferber (1974) seem to agree when they define a sample as that part of a
population taken into consideration under statistical inquiry. The sample size in this study are
twenty SMEs. In support Adegbite Tajudeen Adejare (2014) also used a sample size of 113
people which is about twenty companies thus it is a reasonable sample size that might
produce accurate results.one individual from each department will be targeted, the
departments include finance, human resources, marketing and production because it will help
clearly identify how and why each department should value recordkeeping. According to
B.Muchira (2012) percent or more of any population is appropriate representation of the
population and for generalization of research findings.
Sampling method:
Sample done used the stratified random sampling to cater for the alluded diversity in the
nature of activities. The research had a sample size of twenty SMEs. The businesses were
classified according to activity, thus manufacturing, processing, retail and service. In the
stratas the subjects were picked randomly to come up with the sample size. Zhou L (2010),
states that a stratified random sample is used when one knows in advance that the population
in question contains a number of overlapping subgroups. In the study, the mentioned
subgroups had nothing in common and hence could be viewed as not overlapping done
utilized the stratified arbitrary inspecting to provide food for the suggested assorted variety in
the idea of exercises. The research had an example size of twenty SMEs. The organizations
were ordered by movement, in this way fabricating, preparing, retail and administration. In
the stratas the subjects were lifted haphazardly to concoct the example estimate. Zhou L
(2010), states that a stratified irregular example is utilized when one knows ahead of time that
the populace being referred to contains various covering subgroups. In the examination, the
said subgroups had nothing in like manner and thus could be seen as not covering.
Tafa Mosisa (2011) asserts that a research instrument is a relevant tool used in a research to
gather information. For this research data was collected using a questionnaire and record
analysis. The questionnaire was administered to the SMEs themselves to ascertain the nature
and extent of record keeping. These instruments are further described below.
Questionnaires
These are structured questions on paper where the respondent is expected to fill in short and
precise answers with little to no space to deviate from the subject. Williams. A. J. (2010)
alludes to the questionnaires as a set of framework consisting of a set of questions and scales
designed to generate primary data. This is the best information accumulation apparatus in
study explore since it can gather information about state of mind, behavior and characteristics
required in this research. The questions were composed in a way that was straightforward
while empowering germane issues to be caught. J. K. Chelimo & I. Ole Sopia (2014)
characterizes a poll as an instrument contained a progression of inquiries that are filled in by
the reacted himself. Both open finished and shut inquiries were utilized as a part of request to
look after effortlessness, gather however much data as could reasonably be expected, yet in
the meantime keeping up control over the procedure of data gathering.
Presentation
(i) Tabulations- allow arranging data in a tabular format. Basic tables will be used to
classify or group respondents into similar classes or opinions.
(ii) Graphs- used to articulate depiction of tabulated data such will make comparisons
easier. Graphs to be used include pie charts, and bar graphs
(iii) Percentages Calculation- This is the proportion of the respondents one hundred makes
it easier to compare and interpret.
Qualitative- as conclusions to graphical presentation there are going to be qualitative
conclusions noting the most prominent characteristics
Research plan
Completion of chapter
1. Final submission will be on the 10th of November
2. Final submission will be on the 1 December
3. Final submission will be on the 4th of January
4. Final submission will be on the 9th of February
5. Final submission will be on the 9th of March
Research Budget
Transport costs for research- $40
Printing cost -$4
Wifi cost -$20
Food -$20
References