| dc.description.abstract | Background and Problem: Up to now, researchers and economists have been focusing on
successful entrepreneurship and its success factors and not on business failure, with respect to
the influence of management accounting. Earlier research has proven management accounting
to be of importance, but its connection to, and importance for, entrepreneurship is still not
established. Furthermore, with regard to Sweden’s future development and well-being, it is
desirable to see increased numbers and efficient growth in small and medium size enterprises.
Purpose: The intention of this paper is to demonstrate possible reasons to why once
successful businesses go bankrupt and the role of management accounting in this process. Our
focus will be on previously very successful companies, namely gazelle companies, that
subsequently been misfortunate and gone bankrupt.
Method: An analysis of rapidly growing companies will be conducted, by Dagens Industri
called gazelle companies. In our search for companies that have gone bankrupt, we
concentrate on companies being gazelles during the years 2001 and 2002, the two “oldest”
gazelle lists on DI’s homepage. The study is of a qualitative character based on twelve
questionnaire respondents. We believe that an electronic questionnaire method would be the
most suitable in this case. Moreover, because of a limited survey group, the outcome can not
be statistically secured.
Conclusion: In line with our thesis purpose, and our negative assumption/hypothesis that
most companies have limited or no knowledge/ability/will to construct and use management
accounting information, our findings show that no significant signs can be seen of that
management accounting has played a conclusive role for the greater majority of the
companies in their business failures.
However, the survey shows that the main internal factors of business failure are
connected to financial aspects and the external factors show a shortage in company funds. It
seems like they can not afford losing customers or handle a recession very well. This
strengthens the fact, and also our belief, that management accounting is needed when a
company grows.
Suggestions for further research: A more detailed examination of the companies’ business
strategy, business plan and business concept is also sought. To see if these specific companies
have used measurements, budgets and so forth in similar ways and how these tools are created
and used would be interesting to read about. Lastly, we sought how management accounting
could be of help in foreseeing a bankruptcy, especially in rapidly growing companies such as
the gazelles. | swe |
