AN INQUIRY INTO IDENTIFYING AND SURMOUNTING THE BARRIERS THAT HINDER ENTREPRENEURS FROM LEVERAGING MANAGEMENT ACCOUNTING INFORMATION
DOI:
https://doi.org/10.48047/69bjcw03Keywords:
: Obtaining Information, Financial Literacy, Formal Accounting Systems, Financial Forecasting, Commercial Outcomes, Environmentally Responsible.Abstract
Obtaining information from management accounting is beneficial for a number of reasons, including the ability to make smart decisions, effectively allocate resources, and ensure the long-term prosperity of a firm. There are a lot of firms that struggle to use it, despite the apparent benefits it offers. The purpose of this study is to investigate the reasons why business owners are not utilising management accounting to its full potential. Miscommunication is a contributing factor in widespread misunderstandings regarding the complexity of the subject matter, poor levels of financial literacy, and a lack of awareness of the virtues and advantages of management accounting. In addition, business owners may be reluctant to implement accounting systems or to employ professionals owing to concerns over their financial situation, particularly in the case of smaller businesses. Due to the fact that the day-to-day operations of the company are extremely important, many business owners continue to delay the implementation of formal accounting systems out of the worry that they would use up all of the resources that are available. The management accounting abilities of budgeting, financial forecasting, and cost analysis are all ones that businesses ought to make more use of. In most cases, however, they are eclipsed by the necessities of satisfying operational demands. The researcher need to educate people, simplify accounting processes, and demonstrate to them how these measures will result in cost savings in the long term in order to achieve our goal of overcoming these issues. It is possible that entrepreneurs may find it simpler to make better judgements, raise the visibility of their company's performance, and boost commercial outcomes if these impediments can be reduced. The results of this study fill in some of the gaps in our understanding and provide some useful suggestions that business owners may use to improve their utilisation of management accounting data, which in turn assists their firms in expanding in a manner that is environmentally responsible.
Downloads
References
Agrawal, R., Samadhiya, A., Banaitis, A., & Kumar, A. (2024). Entrepreneurial barriers in achieving sustainable business and cultivation of innovation: A resource-based view theory perspective. Management Decision.
Doan, T. T., & Bonifai, M. (2022). Barriers constraining the growth of and potential solutions for emerging entrepreneurial SMEs. Asia Pacific Journal of Innovation and Entrepreneurship, 16(1), 1–18.
Hariyati, H., Nuswantara, D. A., Hidayat, R. A., & Putikadea, I. (2022). Management accounting information system and intellectual capital: A way to increase SME’s business performance. Jurnal Siasat Bisnis, 27(1), 61–75.
Kumar, S. D. (2023). The role of management accounting in enabling sustainability in business: A comprehensive review. The Management Accountant Journal, 58(6), 22–26.
Latif, S., Izani, S., & Abd. Ghani, M. (2023). The use of management accounting practices by young entrepreneurs in start-up small firms: A qualitative insight. The Journal of Management Theory and Practice, 4(1), 60–69.
Möller, K., & Hietanen, J. (2023). Management accounting adoption in small businesses: Interfaces with challenges and performance. Journal of Accounting & Organizational Change, 19(6), 46–66.
Muttaqin, M. (2022). Mediating effect of management accounting system on the relationship between competition and performance.
Siddiqui, M. S. (2023). Defining the importance and challenges of market competition.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
