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APPENDIX 1
Independent variables used in the study
| Variables | Items | Operationalization |
| Characteristics of the business | ||
| Age | 1 | Years |
| Size 1995 | 2 | Number of employees and turnover |
| Growth | 1 | Percentage change in turnover 94–96 |
| Profit margin | 1 | Profit 1995/Turnover 1995 |
| Stage of development | 1 | 1 = Introduction, 2 = Expansion, |
| 3 = Mature and 4 = Decline | ||
| Line of business | 1 | 1 = Manufacturing, 2 = Building & |
| Construction, 3 = Agricultural, | ||
| 4 = Trade, 5 = Hotel/Restaurant, | ||
| 6 = Consultancy and other services, | ||
| 7 = Transport and 8 = Other | ||
| R&D intensity | 1 | Per cent of turnover spent on R&D 95 |
| Geographical localization | 1 | 1 = < 25.000 inhabitants, 2 = 25.000 |
| to 75.000 and 3 = >75.000 inhabitants | ||
| Type of business | 1 | Limited company, Partnership and |
| Private business | ||
| Capital need | 1 | 1 = Yes and 2 = No |
| Overdraft facility | 1 | 1 = Yes and 2 = No |
| Long–term bank loans | 1 | 1 = Yes and 2 = No |
| Chance to long–term bank loan | 1 | Five point scale (0 = Non–existent to |
| 4 = Very great) | ||
| Chance to capital from new owner | 1 | Five point scale (0 = Non–existent to |
| 4 = Very great) | ||
| Characteristics of the manager | ||
| Gender | 1 | 1 = Male and 2 = Female |
| Age | 1 | Years |
| Experience | 1 | Years as manager in the actual business |
| Managerīs share of business | 1 | Per cent of business owned by manager |
| Time spent on financial matters | 1 | 1 = Never to 5 = Every day |
| Frequency of visits to other businesses | 1 | 0 = Never to 3 = Very often |
| Number of persons discussing business | 1 | 1 = Fewer than 5 to 5 = More than 30 |
| Time spent on getting new contacts | 1 | 1 = Fewer than 5 hours a week to |
| 5 = More than 20 hours a week | ||
| Time spent on maintaining contacts | 1 | 1 = Fewer than 5 hours a week to |
| 5 = More than 20 hours a week |
APPENDIX 2
Bootstrapping measures examined
| Measures |
| Measures for capital minimization (Five–point scale; 0= No use to 4= Very great use) |
| Buy used equipment instead of new |
| Borrow equipment from other businesses for shorter periods |
| Hire personnel for shorter periods instead of permanently employing personnel |
| Co–ordinate purchases with other businesses |
| Lease equipment instead of buying |
| Practise barter instead of buying/selling goods |
| Offer customers discounts if paying cash |
| Buy on consignment from suppliers |
| Measures to meet need for capital (Five–point scale; 0= No use to 4= Very great use) |
| Seek out best conditions possible with supplier |
| Deliberately delay payment to suppliers |
| Withhold managerīs payment for some period |
| Use managerīs private credit card for business expenses |
| Obtain capital via managerīs assignments in other businesses |
| Obtain payment in advance from customers |
| Raise capital from a factoring company |
| Obtain loan from relatives/friends |
| Deliberately delay payment of value–added tax |
| Obtain subsidy from County Administrative Board |
| Obtain subsidy from County Labour Board |
| Obtain subsidy from Swedish National Board for Industrial & Technical Development |
| Obtain subsidy from the foundation “Innovationscentrum” |
| Measures for capital minimization (Dichotomous variables; 0= No use and 1= Use) |
| Use routines in order to speed up invoicing |
| Use interest on overdue payment from customers |
| Cease business relations with customers frequently paying late |
| Offer same conditions to all customers |
| Deliberately choose customers who pay quickly |
| Use routines in order to minimize capital invested in stock |
| Employ relative and/or friend at non–market salary |
| Run the business completely in the home |
| Share premises with others |
| Share employees with other businesses |
| Share equipment with other businesses |
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