Financial Planning and Business Sustainability of SMEs in Nassarawa State

This study examines the relationship between financial planning practices and business sustainability in small and medium enterprises (SMEs) in Nassarawa State, Nigeria's North Central geopolitical zone. SME sustainability challenges in Nigeria are closely linked to poor financial planning, including inadequate cash flow management, absence of formal budgeting, and limited use of financial forecasting tools. This research employs a survey research design with primary data collected from 105 SME owners and financial managers through structured questionnaires. Data were analysed using descriptive statistics and regression analysis. The study evaluates financial planning dimensions including cash flow forecasting regularity, budget preparation and adherence, debt management strategies, financial record-keeping quality, and profitability analysis practices. Findings indicate that cash flow forecasting regularity and financial record-keeping quality are the strongest predictors of business sustainability, measured through business age, revenue consistency, and debt servicing capacity. Budget preparation and adherence showed significant positive effects among manufacturing SMEs but weaker associations in the service sector. The study also identifies reliance on informal financing and limited financial management skills as systemic sustainability threats. Recommendations include government-supported financial literacy programmes for SME owners, mandatory financial record-keeping as a condition for business registration renewal, and development of tailored SME financial planning toolkits. Keywords: financial planning, business sustainability, SMEs, Nassarawa State, cash flow management.