BUSINESS STRUCTURE AND FINANCIAL PERFORMANCE OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMES) IN ONDO STATE, NIGERIA

The study assessed the effect of business structure on performance of MSMEs in Ondo state, Nigeria. This is done to explore how the configuration of businesses in terms of its firm size, ownership structures and audit process can influence performance in terms of its going concern potential of MSMEs in order to promote sustainable business practice in Nigeria. Survey research design was adopted in this study because data was obtained primarily from the respondents using well-structured questionnaire. The study focused specifically on registered medium scale enterprises. The population comprise 1,128 registered medium scale enterprises in Ondo state as at 2020 (SMEDAN, 2021). The sample size of 150 businesses was selected using purposive sampling technique. Data collected was analysed using descriptive statistics and ordinary least square (OLS) regression. Findings revealed that firm size had a negative but insignificant effect on performance of MSMEs. Ownership structure had a positively insignificant effect. It however revealed that audit process positively and significantly affects performance of MSMEs in Ondo state. The study concluded that the size of a firm does not indicate performance, and type of ownership structure adopted may impact performance but minimally. However, the quality of audit process undertaken to ensure control and monitoring significantly determine the firm performance. It is therefore recommended, that all stakeholders must be concerned about the business structures of MSMEs in Nigeria; by introducing policies that will promote sustainable business practice that will elongate business life span of MSMEs in Nigeria.