Informal sector entrepreneurs and accounting records in Nigeria

This study investigated the factors that constrain the entrepreneurs within the informal sector of the Nigerian economy from fully applying organized accounting record keeping practice.A questionnaire was administered to collect information on socio-demographics and on the latent variable and the analysis was carried out using Smart PLS software. Results revealed that knowledge & skills, performance and sources of finance have direct significant positive relationship with accounting practice of the enterprises.Consistent with other studies, ease of application and management competence are not significant.Based on the findings, it is recommended that accounting bodies should develop accounting modules and training schemes that would increase both awareness and participation of the small scale businesses in accounting practice.The regulatory authorities should also develop regulation mechanisms that would force accounting practice