Table 16. Portfolio variations with real...

Table 16.

Portfolio variations with real options models

Model	A	B	C
Description	Base case	Microfirm enhanced	Flexible allocation
Headcount weighing	Equal for microfirms	1.05 for microfirm/	Equal
	and SSBs	0.95 for SSB
Budget allocation (%)	32	32	Varies
Phase I/total budget
% Change in microfirm projects
Phase I		+29	−73
Phase II		+65	−26
% Change in SSB projects
Phase I		−15	−37
Phase II		−35	+30
% Change in portfolio value
		−1.7	+14

Model	A	B	C
Description	Base case	Microfirm enhanced	Flexible allocation
Headcount weighing	Equal for microfirms	1.05 for microfirm/	Equal
	and SSBs	0.95 for SSB
Budget allocation (%)	32	32	Varies
Phase I/total budget
% Change in microfirm projects
Phase I		+29	−73
Phase II		+65	−26
% Change in SSB projects
Phase I		−15	−37
Phase II		−35	+30
% Change in portfolio value
		−1.7	+14

Note(s):

SSB are Standard Small Businesses with 11-499 employees, in contrast to microfirms with 1-10 employees. For Cases B and C, relative differences from Case A are shown. Case B increases the weights for the microfirms by 10% but uses the same Phase I/II budget ratio as Case A. Case C maintains the headcount weights of Case A, but allows the budget ratio to vary. The changes in the number of projects funded are reported for Cases B and C, as are the changes in the portfolio value function. All changes are reported in percent

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