Accounting practices and access to financing for small businesses in rural areas: Challenges and Prospects in the Idiofa Territory

Abstract

Small and medium-sized enterprises (SMEs) play a vital role in the economic and social development of rural areas in the Democratic Republic of Congo, particularly in the Idiofa territory. They create jobs, generate income, and stimulate local economic activity. However, their growth and sustainability continue to be hampered by several challenges, including the lack of formalized accounting practices and limited access to appropriate financing. This study examines the accounting and financial practices of rural SMEs in Idiofa, as well as their effects on management, economic performance, and access to formal and informal financing.Based on a qualitative approach involving literature review and field observations, it focuses on accounting methods, preferred sources of financing, and the relationships between SMEs and financial institutions. The results show that bookkeeping depends more on internal factors such as organizational rigor, the regularity of recordkeeping, and managers’ ability to understand the data than on structural factors such as legal status or taxation. Accounting thus plays a key intermediary role: SMEs that keep their personal finances separate from those of the business and have reliable data are more likely to obtain credit. The main challenges, however, remain internal. They stem from a lack of training in accounting and financial management, insufficient appropriate resources, and a perception of accounting as a burden rather than a tool for improving performance. The study recommends implementing simplified accounting systems tailored to rural settings, strengthening entrepreneurs’ skills, and creating financial support mechanisms specific to SMEs. These measures would promote better business management and sustainable local economic development in the Idiofa region.

Keywords: Accounting, Finance, SMEs, Rural Idiofa, Local development

Received Date: September 17, 2026

Accepted Date: October 09, 2026

Published Date: November 01, 2026

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/1050