Do We Need to Think More about Small Business Capital Budgeting?

Abstract

Capital budgeting is one of the most important areas of finance literature. This paper discusses whether the capital budgeting theory of large business is well applicable for the small ones or not. If it is not, further development of theory becomes necessary. This paper conducted detail analysis of the reasons why the development is necessary. Followed by the analysis of some theoretical and empirical studies, this paper suggests specific factors to consider in future researches on capital budgeting theory for small businesses.