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Socio-economic factors influencing the decision to take credit for small entrepreneurs on the example of Yogyakarta city in Indonesia

Year: 2022

Type: article

Abstract: The study aims to figure out the socio-economic factors influencing the decision to take credit from banks by small entrepreneurs. This research is a quantitative study and uses binary logistic regression with the Cumulative Distribution Function (CDF) to determine the form of relationship between the decision to take credit with the influencing factor. Data was collected with questionnaire from 130 entrepreneurs-representatives of small licensed business from five industries in 2022. The samples were taken in stratified random sampling. The results showed that the significant factors which affect the decision to take bank credit were gender, education level, markets served, industry, and collateral. It is concluded that the Bank and the Government of Yogyakarta could introduce the mechanisms which encourage entrepreneurs to be willing to access credit resources from the banks.

Source: Economic Annals-ХХI

DOI: 10.21003/ea.v199-02

Authors: Any Agus Kana, Hari Nurweni, Yunita Anggarini, Jumintono, Retno Hartati

Institutions: Sekolah Tinggi Ilmu Manajemen YKPN Yogyakarta, Tun Hussein Onn University of Malaysia

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: diamond

OpenAlex ID: W4379537255