Eve Lamberg, Estonian Business School (EBS) Tartu 15.03.2012

Entrepreneurship as a Process: Some Key Phases (Baron & Shane, 2008)

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3.

What barriers exist for future entrepreneurs?

Accounting textbooks emphasize the manual accounting procedure to such an extent that future entrepreneurs bog down in unnecessary steps . For example Horngren et al, 2007 p.141 Exhibit 4-1.

Debit- credit rule of accounting procedure in which data of business activities is processed into financial statements.

Data coding prevent data analysis.

value that accounting can provide

BUSINESS BUSINESS ACTIVITIES ACTIVITIES

(documents) (other subsystems)

Input boundary AIS MEASURING

of business activities

(classifing and accumulating DATA)

(Business events  DATA as input of AIS)

PROCESSING

of business activities

(summarizing and manipulating of DATA)

( DATA  INFORMATION)

COMMUNICATING

of accounting information

(converting of INFORMATION)

(INFORMATION  KNOWLEDGE as output of AIS)

Output boundary

Financial statements about business activities

KNOWLEDGE

for decision making

Thank You for your kind attention!

Questions?