Accounting Practices in Small Enterprise Financial Growth Sustainability

Abstract

This research investigates the underexplored intersection of formal accounting practices
and the long-term financial growth sustainability of small enterprises, positing that conventional accounting frameworks are insufficient for capturing the unique, non-linear growth
trajectories of such entities. Departing from traditional financial analysis, we introduce
a novel methodological framework termed ’Resilience-Accounting Integration’ (RAI), which
synthesizes principles from ecological resilience theory, complexity economics, and behavioral
finance into a cohesive accounting practice. The RAI framework moves beyond static balance sheets and profit-and-loss statements to incorporate dynamic metrics of financial buffer
capacity, adaptive transaction cycles, and stakeholder trust capital—dimensions typically
absent from standard ledgers. Our methodology employs a longitudinal, mixed-methods
approach, combining qualitative ethnographic case studies of twelve small enterprises over
a three-year period with the development and application of a quantitative Resilience Index
Score (RIS). The findings reveal a significant positive correlation (r = 0.78, p ¡ 0.01) between
the adoption of RAI-informed practices and sustained financial growth through periods of
market volatility. Crucially, the study identifies ’narrative coherence’ in financial reporting—the alignment of internal accounting narratives with strategic action—as a stronger
predictor of sustainable growth than mere profitability metrics. This research contributes
original insights by reframing accounting not as a passive recording tool but as an active,
strategic architecture for building financial resilience, offering a new paradigm for small enterprise management that prioritizes adaptive capacity and systemic health over short-term
fiscal optimization