Introduction
In the article Management Accounting and Control (2009) by Satar, Epstein Yuthas, the authors address an existent problem of most micro-businesses in the developing countries of the world. With two-thirds of the world living on $2 a day and more than 500 million microenterprises, it can be stated that the problems of the lack of proper knowledge and skills in doing a business of such scale are of major importance. The authors record their experience in dealing with the most common areas of knowledge necessary for such businesses, the most common areas of failures, and the strategies implied by the owners for their business to survive. The article provides the results and the findings of a series of interviews with hundreds of microfinance clients (microentrepreneurs) and microfinance managers identifying the management accounting tools necessary for the business to sustain success.
Main body
The identified tools are cost management, throughput enhancement, budgeting, risk management, and identifying opportunities. The authors, being business educators themselves, finalized the article outlining the importance of providing education for microbusiness owners, a factor that can have a decisive impact on the success of the businesses. The numbers of microbusinesses in the world point out the demand for the expertise and knowledge to be provided for those micro enterprises, which “play a huge role in the global economy” (Satar, Epstein, & Yuthas, 2009, p. 29).
The importance of the notions provided in the article can be linked to the program by showing the importance of areas of knowledge on the individual scales. Given the examples of microbusinesses as options out of necessity, it can be stated that the current economic situation in the world enforces obtaining such kind of knowledge. In that regard, it can be stated that the notions of finances, administration, and management are becoming a part of most institutions in society, whether profit or not. In that regard, it can be stated that the topics discussed in the article, either outlining the necessity for knowledge, providing the overview of the usage of this type of knowledge on the individual and the business level, and the way a gap in such knowledge can be filled.
Accordingly, acknowledging the importance of such knowledge in retrospect, I can state that I have obtained the majority of the skills outlined by the authors. With the different levels of proficiency in the skills obtained, I can state that further development and/or obtaining the missing one can be achieved through self-learning. In that regard, the differences in the skills obtained and their proficiency can be attributed to the lack of practice, an aspect that can be compensated through self-learning. The extensive availability of access to free information on the internet can be useful for polishing the skills that I already have, or obtaining new ones. Nevertheless, I do believe that practice is the best method of integrating the acquired theoretical material into real life.
Conclusion
It can be concluded that the article provided a necessary insight that defines the necessity of knowledge in a practical context. Many of the aspects taught in schools do not have a practical implementation in real life, while the author outlined several areas of knowledge that are not only necessary for microbusinesses and micro enterprises, but also for people on the individual level. In that regard, I believe that I have the knowledge for both cases.
References
Satar, S. M., Epstein, M. J., & Yuthas, K. (2009). Management Accounting and Control: Lessons for and from the World’s Tiniest Businesses. Strategic Finance.