The Use of Management Accounting Practices by Young Entrepreneurs in Start-up Small Firms: A Qualitative Insight

  • Shahid Latif Universiti Sultan Zainal Abidin
  • Dr. Safrul Izani Mohd Salleh Universiti Sultan Zainal Abidin, Kuala Terengganu, Malaysia
  • Prof. Dr. Mazuri Abd. Ghani Universiti Sultan Zainal Abidin, Kuala Terengganu, Malaysia


Young entrepreneurs confront certain challenges, such as high volatility, riskiness, lack of support, adverse law and order situations, and limited access to public funding. Considering these problems, it is imperative for young entrepreneurs to utilize relevant information before going into venture creation. In this perspective, management accounting practices are considered an emerging area of investigation in the context of young and small businesses. Based on this investigative area, this phenomenological study focuses on how management accounting practices are experienced and used by young Pakistani entrepreneurs in their venture creation under the theoretical lens of cognitive psychology. Qualitative research based upon an interpretive worldview has been selected that postulates that different contextual settings can variate investigation results. Findings have revealed that management accounting practices, including contemporary ones such as planning, benchmarking, risk analysis, budgeting, pricing, product selection, and costing, have been incorporated into startups. While incorporating management accounting practices, fear of failure and stressful situations have been confronted by young entrepreneurs, yet trust and discussion with friends and family members have diluted such fears. This research offers significant implications regarding managing psychological impacts due to experiencing managing accounting practices by incorporating discussions with close friends and family members that can act as catalysts.


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How to Cite
Latif, S., Izani, S., & Abd. Ghani, M. (2023). The Use of Management Accounting Practices by Young Entrepreneurs in Start-up Small Firms: A Qualitative Insight. The Journal of Management Theory and Practice (JMTP), 4(1), 60-69.