Entrepreneurs are agents and drivers of development in most economies of the world. Basically, more focus is laid on the entrepreneurial process of a firm rather than of individuals. Entrepreneurship leads to the development of new ideas, but old ideas are needed to create a balance. Accounting skill is found to be of great value in entrepreneurial performance, and as such, entrepreneurs are advised to embark on capacity building in accounting skill for financial management and record keeping. With reference to location of knowledge and structure of accounting policies, this research has been conducted to view the familiarity, awareness and usage of accounting information carried out by small entrepreneurs of Ahmedabad city. The basic objective of the study is to examine the status of familiarity and application of accounting. For this purpose, primary data was collected through a questionnaire comprising 12 questions. The 70 responses considered were tabulated and analyzed. Questions like information about different accounting methods, adoption of different methods, etc. were covered. It is found that more than 15% of the respondents are unaware of different kinds of accounting system, while about 25% are familiar with Desi-nama system. From the findings, it is concluded that awareness regarding accounting principles and methods is prevalent, but still entrepreneurs need accountants to help them with numbers as they lack the skill.

Entrepreneurship as a term dates back to the Middle Ages when the entrepreneurs were supposed to carry out simple tasks by employing all the resources. It was during the 16th century that the term ‘entrepreneur’ came into focus as being a person who is responsible for the task of initiating and maintaining a business venture. Major developments in this area were taking place in the 17th and 18th centuries, as a result of the Industrial Revolution, by defining the various skills and features of entrepreneurship. Along with the growing importance of different entrepreneurial theories, some incidents or historical events also emerged which changed the scenario of entrepreneurship like, for instance, the setting up of Coca-Cola in the 19th century; the emergence of fast food and McDonalds during the 20th century; Henry Ford and the initiation of the automobile industry; and Heinz, the brand which brought about a revolution in the food market with pre-packaged food.

Businesses and Accounting Skills, A Study on Entrepreneurs