International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Credit Accessibility Model of Small Enterprises Based on Firm Characteristics and Business Performance (Case Study at Small Enterprises in West Sumatera Indonesia)

Author(s): Teti Chandrayanti, Sulaeman Rahman Nidar, Asep Mulyana, Mokhamad Anwar

The purpose of this research is to empirically test the influence of firm characteristics and business performance on credit access in small businesses. The study was conducted with 221 small enterprises in West Sumatera Province-Indonesia using a survey instrument. Data analysis using the Structural Equation Model Lisrel 8.72. The result of this study indicates those firm characteristics have a positive and significant influence on credit access. Business performance as mediating in the relationship between firm characteristics and credit access. It means the stronger of firm characteristics will lead to an increase in the business performance of small enterprises, which will finally have an effect on credit access. Therefore, it is recommended that there should be a strategy to strengthen the firm characteristics to improve the credit accessibility of small businesses.

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