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

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.