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Grahamstown and of those, nine agreed to participate in this study. In most cases it was difficult to get in contact with the owners as they were away most of the time. Some reasons for declining were that the owners did not have time to participate in questionnaires (they were too busy even if they were given enough time); and some were unwilling to disclose any kind of information about their business.
In terms of completing the questionnaires, some of the open-ended questions were left blank. This limits our findings as it was not possible to analyse some of the perceptions they may have had in terms of debt and equity.
RESULTS AND FINDINGS
The following section discusses the findings from the research questionnaires and the interpretations relating to behavioural finance and capital structure theories.
FINDINGS Current Capital Structure:
The table below provides a summary of the finance sources currently being used by the restaurant owners in Grahamstown.
CURRENT FINANCE
Personal Savings/Cash Personal Dept Company Dept
NUMBER OF RESPONDENTS
8 2 1
Two respondents stated that they used personal debt in conjunction with personal cash. One respondent stated that they used company debt with personal cash in equal proportions.
What factors did you take into account in deciding the funding of your business?
FACTORS CONSIDERED BEFORE MAKING CAPITAL STRUCTURE DECISIONS
Availability Finance Costs Firm Size Other
NUMBER OF RESPONDENTS
4 4 2 0
How many people where involved in the decision making process?
FACTORS AFFECTING CAPITAL STRUCTURE DECISIONS: A SMALL BUSINESS PERSPECTIVE 187