SMALL ENTERPRISE ATTITUDE TOWARED THE APPLICATION OF ACCOUNTING SYSTEM (IN CASE STUDY EMDIBER TOWN)

Abstract

Small scale enterprises play a vital role in the economic development of any country. In Ethiopia, most small scale enterprise owners/managers handle their business traditionally. This study aimed at investigating the attitude of small enterprise owners/managers towards the application of major elements of accounting system in Emdiber town. The population of the study consists of ‘60’ small enterprise owners/managers. ‘25’ respondents were selected through a stratified simple random sampling techniques. Structured questionnaire (both open ended and close ended) was employed in the course of gathering relevant data for the study. Data were analyzed by using percentage and frequency. The result indicates that most small enterprise owners/managers have a positive tendency towards internal control and inventory system. Moreover, it shows that a significant number of small enterprise owners/managers have a tendency towards single entry system of bookkeeping and most of them do not prepare financial statements for their enterprise. The study therefore concludes that small enterprise owners/managers have a positive attitude to apply elements of accounting system when different constraints solved and they were highly willing to learn more about how to keep accurate records of their business transactions. Following this the study recommended that, the ministry responsible for SEs development should initiate, in a more strengthen way, record keeping training program for entrepreneurs running small business and bookkeeping in SEs should be made mandatory to change their tendency in to practice and to make them beneficiary. Finally it is recommended that Wolkite University, specially accounting and finance department like that of law school, should establish a free community service in bookkeeping institute to facilitate small enterprise owners to apply accounting system in their enterprise