Conference Paper

The academics and practitioners of the economic development are becoming more and more concerned with the issue of adjustment of the standard methodology of capital budgeting to the realities of small enterprise. This study refers to the general concepts for supporting the small and medium enterprises in the countries of the European Union and with us; and especially to the aspects of modern capital budgeting and the standard methodology, that may be employed successfully for the development of small business in Macedonia. However, this, in no way means striving towards a rigid application of quantitative methodology, but a commitment for introduction of structured strategic planning and systems of support of the processes of capital budgeting. The allocated space for the quantitative methods and procedures will depend upon the nature of the industry and upon the intentions and actual capabilities of the specific company. With the purpose of introducing advanced practices of business planning based on the existing methodology, work needs to be done primarily with bank officials, managers of the network of centres for support of entrepreneurship, professors of management and planning in business high schools and universities, as well as, directly with the entrepreneurs in the sector of small business.