Bankruptcy Prediction: SMEs Case Study in Pontianak, Indonesia

Objective - This study aims to examine the risk of bankruptcy among SMEs to determine whether there are any significant differences in the financial performance between SMEs that apply accounting standard and those that do not. Methodology/Technique - This research uses a case study method to examine SMEs in the business incubator under the auspices of the Bank Indonesia in Pontianak. Descriptive analysis and independent sample tests are also used in this study. Findings - The results show that neither of the SME groups are predicted bankrupt under the financial distress model. Furthermore, the independent sample tests show that, if using a significance level of 5%, there is no difference in the financial performance of both groups. However, if using a significance level of 10%, there is a significant difference in both groups. Type of Paper: Empirical