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This article examines the economic rationale for contracting the services of an accounting or management firm by the potential clients in the locality of small towns in Malaysia. Classifying the clients based on different small towns in the country identifies the potential demand of host clientele. Polarisation of clients based on ethnic grouping within the localities of small towns is to look at the differences in the results of this study so that any decision for a new venture may or may not be affected by the choice of small town with businesses being dominantly populated by certain ethnic group. There appears to be evidence of significant ethnic and business locality effect in term of the demand for the types of services provided by the accounting or management services firm. Thus, in making the choice of setting-up accounting or management services firms in small towns , due consideration must be given to the influence of these two factors. Furthermore, this study highlight the importance and priority given by clients to the various patronage factors as a guide aiming at ensuring the going concern of a newly set-up accounting or management services firms in small towns in this country. </p

Criteria for The Establishment of An Accounting and Management Services Business in Small Commercial Towns