Do business records management affect business growth?

Area of Science:

• Business Management
• Information Science
• Economic Development

Background:

• Small and medium-sized enterprises (SMEs) are vital for economic growth, requiring effective strategies for sustainability and expansion.
• Implementing robust records management plans is essential for informed decision-making, policy development, and operational efficiency in businesses.
• Adequate record-keeping supports business progress tracking, strategic planning, and contributes to poverty reduction through government revenue generation.

Purpose of the Study:

• To investigate the impact of business records management variables on the growth of SMEs.
• To analyze the indirect and total effects of records management training, policies, and practices on business expansion.
• To identify factors hindering or promoting the adoption of adequate record-keeping procedures in SMEs in Ghana.

Main Methods:

• A quantitative research approach was employed to examine the relationships between variables.
• Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized for statistical analysis.
• The study focused on SMEs in Ghana to assess the influence on business growth.

Main Results:

• Business records management and training showed a positive indirect effect on business growth.
• Business records management policies had an insignificant indirect effect on SMEs' adoption of record-keeping procedures, negatively impacting growth in Ghana.
• The total effect of business records management training, policies, and practices positively influenced business growth.

Conclusions:

• Business records management is a critical factor for SME growth and requires greater policy attention.
• Strategic planning for business expansion can be enhanced through data derived from proper record-keeping.
• Effective records management is fundamental for SME long-term viability and meeting stakeholder information needs.