FACTORS WHICH AFFECT THE DECISIONS OF ENTREPRENEURS TO USE THE BUSINESS LOAN SERVICE OF SMALL AND MEDIUM ENTERPRISES (SMES)

Abstract

This research aims to study factors which affect the decisions of entrepreneurs to use the business loan service of Small and Medium Enterprises (SMEs). The purpose of this research is to study the personal factors and marketing mix (7Ps) factors affecting the decisions of entrepreneurs to use the business loan service of SMEs. Based on the analysis of relationships it was found that the service marketing mix was related to the decision to use the business loan service of SMEs. The results show that SMEs entrepreneurs focused on the service marketing mix at a very high level. The respondents gave the most importance to the process of service followed by personnel price creation and presentation of physical characteristics distribution channels marketing promotion and product aspects respectively. The results of the data analysis of decision making on business credit services of SMEs were at the highest level. The highest score is the decision to use the service manually followed by the staff gave advice inquiries from financial institutions and find information on using business credit services respectively. The demographic characteristics are sex education duration of business and different types of business. There are a number of factors that determine the choice of a business loan.