The purpose of this thesis is to increase understanding of the financial choices made by SMEs and the choice of capital budgeting techniques. Furthermore, to see if the choice of financing have an influence on the choice of capital budgeting technique. This is important since SMEs contribute to employment in the society and the financial choice and use of capital budgeting techniques could be crucial to their contribution. To capture in-depth understanding, this thesis have used a qualitative approach and interviewed seven manufacturing SMEs located in Sweden. The main findings are the following, (1) SMEs mainly use reinvested capital and avoid financing if possible from financial institutions. Furthermore, (2) less sophisticated capital budgeting techniques was used regardless of financial choice. However, (3) when SMEs suffer from liquidity problems they express to feel financial pressure from financial institutions. Which leads to SMEs putting a payback period on the investment to satisfy the demands from financial institutions. This thesis concludes with guidelines for future research.
|Date of Award||2015-Jun-29|
|Supervisor||Emil Numminen (Supervisor), Zahida Sarwary (Supervisor) & Håkan Jankensgård (Examiner)|
- Degree of Bachelor of Science in Business and Economics
- 15 HE credits
Swedish Standard Keywords
- Business Administration (50202)