INTERNAL CONTROL PRACTICES AMONG MICRO AND SMALL ENTERPRISES IN NORTH-EASTERN NIGERIA

Abstract

It is essentially important for micro and small business owners to understand the effect of
internal control practices on the growth of their investments. The study is necessary due to
non-challan attitude of some micro and small businesses in regard to control system,
particularly in their personal role of self-involvement and oversight duties, as well as
effective cost control exercise. This research study interviewed 86 micro and small business
owner-managers to identify their dedication towards internal control system. Data is
analyzed on SPSS version 23 software. The findings of the study showed that, owners’
involvement and oversight have a significant effect on the growth of micro and small
enterprises in north-eastern Nigeria. The findings also showed that, cost effective control
have a significant effect on the growth of micro and small enterprises in north-eastern
Nigeria. The study recommends that, for micro and small businesses to grow, entrepreneurs
should actively participate in key decision-making processes, invest formally in internal
control measures, as well as to adopt to changes in the external environment.