The impact of record keeping on the growth of small businesses in Soroti district : a case study of Arapai market
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Worldwide, every business, no matter how small, desires to succeed and grow in its endeavors. However, in order to be a success in the business world, business owners need to develop the discipline of keeping track of all the sales, cash proceeds, and overall turnover of their business. Small Business Enterprises (SBE) have been accepted worldwide as an instrument of economic Growth and development. Despite the benefits accruing from proper records keeping practices, SBs appear ill suited to the effective application of records keeping practices. The requirements to fully implement the records keeping process often burdens small business enterprises. Additionally, there are the possibilities that SBs may be built into complicated recordkeeping system existing in large corporations that may have ulterior motives of suffocating SBs' existence. Even though some of the practitioners have realized the importance of records keeping, they lack an understanding of what constitutes a comprehensive set of records keeping practices. As a result, most of the SBs are having serious weaknesses and facing obstacles hampering their productivity and competitiveness which are critical to business growth. They are plagued with the problem of poor financial and market growth performance and inability to satisfy customer demands among others. This calls for urgency for proper understanding of impact of record keeping practices on small business growth. The objectives of this study were therefore, to find out the record keeping practices in small scale business enterprises in Arapai market, Soroti District; to establish the rate of growth among small scale business enterprises in Arapai market, Soroti District; and to examine the impact of record keeping on growth of small-scale business enterprises in Arapai market, Soroti District. The study used both qualitative and quantitative research methods and established that most of the business operators do prepare and keep sales day (receipt) books, practice and keep purchase day (order) books, prepare and keep expenditure (bills) books and prepare and keep statement of cash flows. However, many of the respondents did not keep statements of financial position. As far as the rate of growth was concerned, many of the businesses were making progress every year in terms of sales and market shares. One of the recommendations were that the government puts in place programmes that aim at sensitizing the traders on the importance of record keeping.