Hello ACB, Most small businesses are mature businesses and are not in development stage.
I would make a concession, however, that many small businesses borrow not out of neccessity, but simply because there is a tax benefit to do so. An example of this is novated vehicle lease and the accelerated depreciation given to small business for vehicle purchase as part of the Rudd Government stimulus package.
It sometime seems silly to lease new vehicles every 2 years and then sell them at a time when there is years of reliable service left in the vehicle. This type of borrowing is simply not overall economical and private vehicle buying and ownership is evidence of that.
