Sebelas Maret International Conferences, The 5th National Conference on Applied Business

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Nindya Permata Charita, Bagus Dwi Prastyo, Ika Kristianti

Last modified: 2019-03-22


The objective of this research is to analyze and make a conclusion about the dynamic of accounting practice that correlate with the concept of business enrity for Small and Medium Enterprises (SMEs). This research used socioemotional wealth (SEW) and family embeddedness (FE). This research uses qualitative research with research objects of several food and beverage SMEs and batik SMEs in Salatiga and Surakarta City. The technique used in this study was interviews with six people as informants. The results showed that the concept of business entity can be influenced by the SEW and FE approaches, because this can be seen from the dimensions which are the factors of the two approaches. Factors that influence the socioemotional wealth approach in forming the concept of business entity are the influence of the family in business, the competitive nature of the business environment, kinship in the business, and pressure or emotional family. Whereas the factors that influence the family embeddedness approach in forming the concept of business entity are business units are the attachment and role of the family and the quantity and quality of the SME owner in building relationships. The implications of this research are SMEs can increase accounting awareness and knowledge.