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| Author: | Block, S. |
| Title: | Capital budgeting techniques used by small business firms in the 1990s |
| Journal: | Engineering Economist
1997 : SUMMER, VOL. 42:4, p. 289-302 |
| Index terms: | CAPITAL BUDGETING COMPANIES INVESTMENT |
| Language: | eng |
| Abstract: | In recent times, small business firms have created 80 percent of the new jobs in the United States. Thus, their methodology for capital investment decisions is very important, though it continues to be somewhat different from that used by larger business firms. A questionnaire survey with 232 small business respondents indicates that the payback method is still the preferred approach by 42.7 percent of the firms. Unlike many larger firms, their time horizon is often the period over which a financial institution will extend them funding. |
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