Open AccessDETERMINAN PREFERENSI STRUKTUR MODAL USAHA MIKRO DAN KECIL
Author(s) -
Khaira Amalia Fachrudin
Publication year - 2017
Publication title -
ekuitas
Language(s) - English
Resource type - Journals
eISSN - 2548-5024
pISSN - 1411-0393
DOI - 10.24034/j25485024.y2013.v17.i3.2255
Subject(s) - capital structure , collateral , business , loan , capital (architecture) , logistic regression , financial institution , industrial organization , finance , debt , archaeology , history , medicine
Capital structure is the mix of sources of funds used by a firm. Capital structure of Micro and Small Enterprises can be determined by several factors such as owners characteristics and firm’s characteristics. This study aims to investigate the determinants of financing preferences MSEs owners at USU Market in Padang Bulan Medan. The determinants consist of owners characteristics and firm’s characteristics. The owner characteristics consists of education, entrepreneurability, and experience. Meanwhile, the firm’s characteristic used is firm size. Structured questionnaires were used to collect data from 100 micro and small enterprises. Logistic regression model was used to test several literature-driven hypotheses. The results at the 5% alpha level show that firm size has a significant influences on the capital structure preferences of SMEs. Other variables have no significant effects. The implication is that the larger the size, the greater opportunities of small and medium enterprises to use external capital. It is difficult for smaller enterprises to access external capital due to the minimum collateral. They also have lack of time for the loan adimistration process. The official financial institution needs to pay full attention to help the the smaller enterprises to get the capital needed for their business expansion.