The Role of Bookkeeping on the Survival of Very Small Businesses in the Kumba Municipality

Abstract

This paper examines the effect of bookkeeping on the survival of Very Small businesses in the Kumba municipality. A sample of 150 respondents was selected through stratified and random sampling. Data was collected mainly through questionnaire. Descriptive (percentages) and inferential (the Chi square) statistical tools were used for the analysis and testing of hypotheses. The findings revealed that most very small businesses in the Kumba Municipality have an account clerk and record their transactions manually following the single entry system. The major bookkeeping challenge they face is the lack of time, as such many of them maintain only the sales book. The study also revealed that when adequately kept, bookkeeping significantly influences the survival of very small businesses in the Kumba municipality as it enables them to trace their problems and to provide appropriate solutions. It was recommended that very small business owners should acquire further training in bookkeeping or employ qualified bookkeepers to assist them in their tasks.