Application of Management Accounting in Informal Division Enterprises of Janakpurdham Submetropolis

Abstract

There is a greater contribution of informal sector entrepreneurs to the nation in Nepal. Since it is difficult to update the statistics of such businesses, Nepal may take advantage of developing micro-business into small and medium industries after microlevel study. Informal level businessmen can be trained and motivated to develop as an industrialist. Taking this idea into account, this study was carried out to find how informal entrepreneurs develop a strategy on the basis of a management accounting point of view. Four informal businesses in the Tarai region were selected for the study. A depth interview was carried out with the owner of the business.The study concluded that informal sector entrepreneurs are strategic even though they don't maintain the books of account, produce financial reports like systematized businesses. Their strategies were seemed for the present time but not for the long run because they lack the know-how.