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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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