The Construction of Entrepreneurial Accounting: Evidence from Indonesia

Abstract

Objective-This research aims to identify a cultural theme embedded in entrepreneurial accounting and construct the form of entrepreneurial accounting. Methodology/Technique-A cognitive anthropology method is employed in this research to investigate the cultural atmosphere of entrepreneurial accounting. This is achieved by conceiving the atmosphere into informants' (owner/entrepreneur-director) mind-set. The research was conducted at various Padang restaurants in Jakarta, Indonesia, that were classified into four groups based on their size and level of complexity. Finding and Novelty-Firstly, a number of cultural themes of entrepreneurial accounting are revealed among the four Padang restaurant groups. There are four similar cultural themes: (a) business process turbulence; (b) togetherness intensity; (c) informal control processes; and (d) formal control processes. Despite the fact that all of the restaurants have similar cultural themes, the elements embedded in each theme are different and require certain adjustments in the design of entrepreneurial accounting based on a profit sharing system. Secondly, a construction of entrepreneurial accounting coloured with a unique socio-cultural background was also discovered. This construction enables owner/entrepreneur-directors to execute work programs with a view to achieving the company's goal to enhance performance, either financially or non-financially. Type of Paper: Empirical.

Entrepreneurial Accounting as a Driver of SMEs’ Sustainability: A Systematic Review

“…Six EA articles used the interview as a method of data collection, however, only 33% (2 out of 6) employed only interview as a method of data collection (Mouritsen & Pflueger, 2018;Almeda et al, 2020). Three articles rely on the strength of the observation method (Situmorang et al, 2018;Hanif et al, 2019;and Krisanto, 2020), while one article employ the use of Experimental learning (Moreira et al, 2020) and Ethnography (Hanif et al, 2019).…”

“…For example, Chen et al, (2016); Anisuba (2017); Nohong et al (2019) combined survey and secondary data, while Laux & Stocken (2016) and Owusu et al (2019) combined both secondary and document analysis methods. One article combined interview, secondary data and document analysis (Akroyd et al, 2019), while another one combined interview, observation, document analysis and ethnography to collect EA data (Hanif et al, 2019).…”

“…For example, Ziatul & Ilona (2022) investigated the impact of financial literacy on the sustainability of SMEs; Wogboroma & Amesi (2021) explore the relationship between student self-sustainability and acquisition of entrepreneurial accounting skills. Others investigated the impact of EA on marketing (Putulowskki et al, 2021); entrepreneur behaviour (Mudasih et al, 2021); women entrepreneurs (Yasin et al, 2020) and self-employment (Reyad et al, 2020).On the other hand, 18% of the EA article reviewed were based on conceptual research with authors providing background to the EA concepts (Hanif et al, 2019;Krisanto, 2020) and documenting recommendations as to the importance of EA to the sustainability of SMEs (e.g. Al-Sanafawy, 2021).…”

“…The concept of entrepreneur accounting explores the relationships between entrepreneurship activities and accounting skills taking into consideration of the behavioural patterns of entrepreneurs in financial literacy (Hanif et al, 2019). The concept, therefore, emphasises the importance of financial capabilities in the aspect of planning, business control, cash management, budgeting and forecast, and taxation in business ventures, especially e small and medium enterprises.…”

“…How can eliminate such monumental loss of more than N200 billion (Olaoluwa, 2021) is the main reason to understand the importance of basic financial information to both entrepreneurs and investors. Hence, the need for business owners/entrepreneurs to develop the necessary management and cost accounting skills for business sustainability (Okoye et al, 2017;Hanif et al, 2019;Wogboroma & Amesi, 2021).…”