ACCESS TO FINANCE AND PERFORMANCE OF SMES IN KANO: MODERATING ROLE OF RECORD KEEPING

This study examines the moderating influence of record-keeping on the relationship between access to finance and the performance of small and medium enterprises (SMEs) in Kano State. Employing survey research design using quantitative method, data was gathered from a sample of 373 business owners, selected from a total population of 21,615 registered SMEs, based on simple random sampling techniques. A thorough analysis was performed using statistical tools, including correlation and hierarchical regression. The results indicated significant associations among access to finance, record-keeping, and SME performance. The findings showed that while access to financial resources is a vital factor in enhancing SME performance supporting business growth and technological investments, effective record-keeping is equally crucial for tracking financial health and enabling sound decision-making. Hierarchical regression analysis revealed that record-keeping partially moderates the relationship between access to finance and SME performance. This suggests that although proper record-keeping enhances the positive effects of financial access, it does not fully explain the relationship, highlighting the need for both elements to work together to achieve optimal results. The study recommends a dual strategy that focuses on improving access to financial resources alongside strengthening record-keeping practices among SMEs.