Determinants of Occupational Fraud amongst Small and Medium Scale Enterprises (SMEs) in Edo State, Nigeria

Abstract

The main objective of the study was to assess the determinants of occupational fraud amongst SMEs in Edo State. Specifically, the study examined the relationship between owner factor; organizational factor; personal factor; and employee factor on occupational fraud amongst SMEs in Edo State. The study employed primary data with the use of questionnaire to elicit information from population of study using Guilford and Flruchter (1973) formula to determine sample size among SMEs key officials, and introduced path correlation and pooled Ordinary Least Square (OLS) regression to assess which among the determining indicators had positively or negatively influences occupational fraud amongst SMEs. The study revealed that owner factor had significant influence and positive relationship with occupational fraud. This implied that owner factor is a strong influencing factor on occupational frauds amongst SMEs in Edo State, while organizational factor showed a significant effect and positive relationship. The implication of this is that organizational factor is a critical enhancing factor of occupational fraud amongst SMEs in Edo State. Moreso, the study observed that personal factor had significant effect and positive relationship with occupational fraud. The implication of this is also that personal of the employee had strong determining influence, which further revealed that employee factor had no significant effect, but positive relationship. The finding implied that employee factor is a weak enhancing factor of occupational fraud amongst SMEs in Edo State. The study therefore, concludes that the following factors of occupational fraud such as owner, organizational, personal and employee has the ability of lessen occupational fraud amongst small and medium scale enterprise in Edo State if adequate policy is entrenched, rules and procedures are closely monitored and followed to the later. Hence, occupational frauds with emphasis to various factors that enhance them are cankers that could disruption operations and going concern of small businesses in Edo State and Nigeria in general.