The Effect of Education Levels of Micro, Small and Medium Enterprises (SME) On Financing Preferences in the Banyumas Regency

Abstract

The aim of this study was to determine the influence of the owner’s characteristics towards a financing preference of MSMEs in the Banyumas Regency. The design/Methodology/Approach used included the Owner’s characteristics proxied through the level of education. Financing Preference is proxied in the funding of internal business entity assets, short term expenses, long term expenses, other types of expenses, and the financial wealth of external business entities. Analysis was carried out on 100 MSMEs in Banyumas that met the research criteria. The data collection method used in this research was giving out the questionnaire directly to 100 MSMEs players in Banyumas Regency. The result shows that education has an effect on financing preference, although, in the case of education, the level does not affect the other form of finance (OFF).