The implementation of SMEs sector's strategic management accounting to win the local competition relating to facing global business competition

Abstract

Fact has proved, as BPS (2000) data shows about 9 of 10 Indonesia's business is Small, Medium Enterprise sector (SMEs), and that biggest foundation of Indonesia's Gross Domestic Product (GDP) is coming from SMEs sector. It's expected that SMEs will still grow in the future because the domestic demand is still very big. Because of that, and to stronger SMEs sector, so oil stake holders have to use SMEs product to fulfill their consumption, so then SMEs's profit will increase continuously. And in other side, SMEs sector has to develop their business capability, so they can reach their competitive advantages. One tool which can be used to win the competition is strategic management accounting (Collier: 2006: 48), with step such as: (1) finding competitor's information about their pricing, cost, sales volume, and market share; (2) doing management cost reduction; (3) developing their business strategy. These 3 steps will come-up to SME's competitive advantages, so they can maintain their sustainability and also improve their market share in domestic and analogously also in global market. In other words, SMEs business can survive in global competition.