Systematic Operational Budgeting: The Preliminary Study on Perception of SMEs Entrepreneurs
DOI:
https://doi.org/10.24191/aej.v4i1.15287Keywords:
SME, budgeting, costing system, financial management.Abstract
Inability to acquire and comprehend the required financial and management skills are blamed to be the fathom of failures of small medium enterprises (SMEs) in Malaysia, as reported by Beh (2013). Small business is a critical contributor to Malaysia’s economic recovery and strength, to building Malaysia's future and to compete in today's ever-challenging global marketplace. Realizing the above, it drives the current study to investigate i) the perception of the SMEs entrepreneurs in budgeting and record keeping and ii) the need for a systematic operational budgeting to assist SMEs entrepreneurs in recording basic costing transactions. The findings of this study have implications for SMEs entrepreneurs in Malaysia. It will contribute to existing literature which highlight the lack of systematic operational budgeting among SMEs entrepreneurs in rural areas. Therefore, there is a need for the proper budgeting system that lead for better SMEs transformation and empower entrepreneurship towards a sustainable economy
References
Abdul Rahman, N., Yaacob, Z. & Mat Radzi, R. (2016). The Challenges among Malaysian SME: A Theoretical Perspective. World Journal of Social Sciences, 6(3), 124 – 132
Agyei-Mensah, B. K. (2011). Financial management practices of small firms in Ghana: An empirical study. African Journal of Business Management, 5(10), 3781-3793
Ahmad, K. (2014). The Adoption of Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises. Asian Social Science, 10(2), 237-249, doi:10.5539/ass.v10n2p236
Ali H., Omar E.N., Nasir H.A. & Osman M.R. (2018). Financial Literacy of Entrepreneurs in the Small and Medium Enterprises. In: Noordin F., Othman A., Kassim E. (eds) Proceedings of the 2nd Advances in Business Research International Conference. Springer, Singapore. https://doi.org/10.1007/978-981-10-6053-3_4
Armitage, H.M. & Webb, A. (2013). The use of management accounting techniques by Canadian Small and Medium Enterprises. A field study, University of Waterloo. Available at: http://vahaonline.com/wp-content/uploads/2013/11/SSRN-id2201163333.pdf.
CIMA. (2015). Budgeting. Topic Gateway Series No. 27. Available at: http://www.cimaglobal.com/Documents/ImportedDocuments/cig_tg_budgeting_mar08.pdf. Accessed 17 May 2018
Ismail, N. A. & Mat Zin, R. (2009). Usage of Accounting Information among Malaysian Bumiputra Small and Medium Non-Manufacturing Firms. Journal of Enterprise Resource Planning Studies, 9, 1-7
Joshi, P.L. (2001). The International diffusion of new management accounting practices: The case of India. Journal of International Accounting, Auditing & Taxation, 10 (2001), 85-109
Maduekwe, C.C. & Kamala, P. (2016). The Use of Budgets by Small and Medium Enterprises in Cape Metropolis, South Africa. Problem and Perspectives in Management, 14(1), 183-191. http://dx.doi.org/10.210511/ppm.14(1-1).2016.06
Mohd. Amy Azhar, M. H., Harizal, O., & Hoe, C. H. (2010). Financial Management Practices: An In-depth Study Among the CEOs of Small and Medium Enterprises. International Review of Business Research Papers, 6(6), 13-35
Mutanda, M. (2014). The Perception of Small & Micro enterprises in the City of Durban Central Business District (CBD) (KZN) towards financial planning. Mediterranean Journal of Social Sciences, 5 (6), 153 – 165
New Straits Times. (2017). Govt: SMEs are Key Economic Player. Retrieved from https://www.presreader.com/malaysia/new-straits-times/20171005/282226600931682
Norasikin, S., Norailis, A. W. & Izlawanie, M. (2013). Strengths and Weaknesses among Malaysian SMEs: Financial Management Perspectives. Social and Behavioral Sciences, 129 (2014), 334-340
SME Annual Report 2016/2017. Available at : http://www.smecorp.gov.my/index.php/en/sme-annual-report-2015-16?id=2150. Accessed 22 May 2018
SME Corporation Malaysia (2013). Entre.News: Challenges faced by SME in a virtual world. Retrieved from http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-03-46/entrepre-news/162-entrepre-news/tahun-2013/338-challenges-faced-by-sme-in-a-virtual-world
The Malaysia Reserve. (2018). New definition of SME shuts out companies from grants. Retrieved from https://themalaysianreserve.com/2018/02/20/new-definition-sme-shuts-companies-grants/
Zeinalnezhad, M., Mukhtar, M. & Sahran, S. (2011). A Study on benchmarking models and frameworks in industrial smes: Challenges and issues. International Journal on Advances Science, Engineering and Information Technology, 1 (1), 6-11. doi: 10.1108/13683041011074173
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
