The Influence of Cultural Factors on Accounting Decisions in Entrepreneurship in Anambra State

Abstract

Entrepreneurship drives economic growth, employment and innovation across the globe. This research paper aimed to empirically explore the influence of cultural dimensions on entrepreneurs’ accounting decisions with a focus on the Nigerian Micro, Small and Medium Scale Enterprises (MSMEs) sector. The study used quantitative methods via the survey design to gather data from entrepreneurs in two geo-political zones in Nigeria- the South West and South-East zones. Long term orientation and indulgence-restraint were the cultural dimensions found to be significantly influential in determining entrepreneurs’ accounting decisions. Long term orientation is associated with more quality accounting decisions as revealed by the positive relationship found, while higher indulgence further deteriorates the entrepreneurs’ inclination towards better accounting decisions depicted by a negative relationship. Power distance, business registration and masculinity-femininity were relatively dormant in the entrepreneurs’ psychological processes for making accounting decisions. The study concludes that cultural factors in general, are significant predictors of accounting decisions in entrepreneurship. It was recommended that entrepreneurs are constantly sensitized on the benefits involved in adopting formal accounting practices to promote a positive change in the appetite for quality accounting decisions.