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ABSTRACT
SMEs play a very important role in Indonesia's economy and have a great potential for strengthening the real sector in Indonesia. But there has not been no appropriate infrastructure yet which is accounting system to show the business feasibility.
Convection business in Tingkir Lor Village had been started by a family, but has gotten bigger now. This business has many strengths and weaknesses. Based on the condition and background, the proposed-accounting system has been developed. It has been also successfully tested for a month transaction and revised.
Adding knowledge management into accounting system is an alternative way to develop the proposed-accounting system. The four modes of knowledge creation will facilitate the business and its owner to add some modules in accounting system and to reengineer the business process.
Keyword: Accounting System, Small Business, Knowledge Management
INTRODUCTION:
Small business plays a very important role in Indonesia's economy, particularly in aspects increased employment, income generating, economic development and non-oil exports increasing (Tambunan, 2009). In addition, this sector is considered as a driving force for the rural economy. But until now there are still many problems to hinder the small business growth. Facts in the Asia Pacific region revealed that Small and Medium Enterprises (SMEs) employ about 60 percent of the workforce. Only 10 percent of the total companies in Asia Pacific which is a big business, the rest are SMEs (Basuki, 2009). For Indonesia, according to BPS data in 2008 the numbers of micro, small and medium enterprises develop into 51.26 million and able to contribute to the total national GDP amounted to 52.7 percent, or approximately Rp 2.609,4 trillion of the total GDP of Rp 4.954 trillion. SME sector is also able to absorb labor force 90.9 million people or 94.4 percent of the total national workforce (KSP, 2010). This shows a great potential and role of SMEs for strengthening the real sector in Indonesia.
The APEC SME Summit 2009 in Singapore noted that the business potential of SMEs in the Asia Pacific region could grow one trillion dollars when all APEC members provide a supportive business climate for these businesses (Basuki, 2009). But this time instead SMEs face barriers impenetrable layer since lacking of facility/infrastructure and legal procedures. Sigi Research and New...