The Effects of Business’ Characteristics in Selecting the Investment Decision-Making Technique for MSMEs.

Abstract

Investment decision-making for MSMEs can be conducted with capital budgeting techniques (CBT) and non-capital budgeting techniques (NCBT).  The selection of investment decision-making technique is very important for the company. This selection can be affected by some factors. One of them is business characteristics. The population of this study is the entire MSMEs Batik Tulis Lasem in Rembang Regency, Central Java Indonesia. The sampling technique used is purposive sampling. There are 69 respondents were involved. The results showed that the level of education and the level of experience do not influence MSMEs in making investment decisions with CBT and NCBT. On the other hand, the age of MSMEs can influence MSMEs in making investment decisions with CBT, but it does not affect NCBT. The results of this research can be used by MSMEs to help them in selecting the investment decision-making technique so that the sustainability of MSME business can be maintained.