Theoretical Alignment of Accounting and Entrepreneurship in Business: Why Entrepreneurship Skill is a Great Intellectual Asset in Today’s Knowledge Based Economy?

Abstract

The main objective of this paper is to articulate a theory-based balanced sheet with emphasis on the location of entrepreneurship skill in accounting conceptual framework. The paper is a mixed research adopting both qualitative and quantitative methods. It made use of descriptive research design and obtained data from secondary sources. The paper reviewed the fundamentals of entrepreneurial theory by adopting an integrative and analytical view of entrepreneurship, providing room for entrepreneurial views reconciliation in conformity with the position of entrepreneurial skill as an asset element in accounting. It focused on industrialization processes across the globe showing how entrepreneurs were able to accumulate wealth, whether legitimately or illegitimately, through the use of their entrepreneurial skills. The paper refutes the view that the knowledge-based economy is a new normal based on new innovative discoveries. It rather upholds that entrepreneurial skill had been part of the accounting conceptual framework and a consistent part of capitalism but is only attracting massive attention now due to hyper unemployment and underemployment. The findings disclosed that, though, entrepreneurs are often constrained by general framework of capitalist ideology, accounting framework explains the variations in entrepreneurial behaviours. The paper concludes that historical evidence across the globe show that accounting theory deepens understanding and perception of the role of entrepreneurs in a dynamic economy. The paper recommends further integration of accounting and entrepreneurship to ensure massive business growth and economic development.