Small businesses are valuable assets, but valuing them can be tricky. Different methods exist, like book value or earnings capitalization, but each has pros and cons. Investors want to balance risk and return, spreading risk by investing in multiple assets. Small businesses don't always fit neatly into this framework. Uncertainty and risk play a big role in small business valuation. Risk can be measured, unlike uncertainty, which includes factors like technology changes or competition. A new approach using accounting betas is suggested to better value small businesses.