THE ROLE OF FINANCIAL MANAGEMENT ON MSMES SURVIVAL IN KAURA NAMODA

Micro Small and Medium Enterprises (MSMEs) are recognized globally as critical drivers of economic growth, employment generation, and poverty reduction. This study examines the effect of financial management on the survival of Micro, Small, and Medium Enterprises (MSMEs) in Kaura-Namoda, Zamfara State. The study focuses on three key dimensions of SME survival: profitability, equity-debt ratio, and business expansion, with financial management as the independent variable. A sample of 50 MSMEs was surveyed using a structured questionnaire, and data were analyzed using SPSS software through descriptive statistics, reliability and validity tests, and multivariate regression analysis. Findings reveal that financial management has a significant positive effect on profitability and equity-debt ratio, indicating its critical role in enhancing financial performance and capital structure management. However, its effect on business expansion was statistically insignificant, suggesting that factors beyond internal financial practices influence expansion activities. The study concludes that while financial management is essential for SME sustainability, other external and strategic factors are required to drive growth. Recommendations include strengthening financial literacy, optimizing capital structure, and implementing supportive government policies. This research contributes to the growing body of literature on SME development in Nigeria and offers insights for practitioners, policymakers, and academics.