The Small Business Innovation Research Phase I project will study double entry bookkeeping with the goal to document an application that supports network business organizations. Network business organizations are a proposed solution to emerging economic needs; they enable business entities to compete in naturally monopolistic contexts. An example is an operating system where ownership has a natural-even desirable-need to be a monopoly. The proposed change allows competition to individual ownership by collective owners who compare for portions of the monopoly itself. Our Research will proceed in three parts: (1) Create a mathematical model describing traditional double entry bookkeeping; (2) Build a prototype bookeeping system in partnership with a local network group to observe and document the special needs of network organizations; and (3) Create a software design for large scale implementation based upon our research at the local community level. Extend the local implementation to Internet groups. Upon conclusions reached in our Phase I study and its documentation, Phase II will: (1) build a first generation, Internet aware bookkeeping program; (2) add legal language essential to enforce contracts among members of a network organization; and (3) continue empirical validation of the bookkeeping model, its software application and its piecemeal growth. Create a bookkeeping standard for intellectually competitive business entities that are optimized by the application of language which would otherwise generate a cultural monopoly.
