CAPITAL BUDETING TECHNIQUES IN SME’S OF RAJASTHAN

Abstract

From the study it has been inferred that as small business owners’/ managers’ levelof awareness on financial management practices are very low, very few financialmanagement and accounting tools and techniques have been practiced by therespondent to assess their business unit's level of performance in fiscal terms.Moreover, it has been observed from the present study that a different pattern ofbehaviour in financial record keeping in the field of cost accounting, pricing decision,credit management, inventory management, and capital investment decision hasbeen followed which is at total variance with the prescribed standard rules offinancial management and accounting. In most of the cases, small business decisionprocess is the result of ‘experience’, ‘intuition’, or guess work’. Thus, it is suggestedthat these small business owners are financially disciplined and controlled. Theymust either learn the financial management practices or appoint persons who aregood in accounting practices for future sustainability.