Critical Factors That Determine Credit Approval to Micro, Small, and Medium Enterprises (MSME) IN BEKASI


This study aims to reveal the factors determining credit approval to Micro, Small, and Medium Enterprises (MSME) in Bekasi City for the year 2013. The variables used in this study are owner’s capital, company establishment, collateral value, credit amount, owner’s age, and good relationship with the bank. In this study, the logit model is used in which there is only one dependent variable in form of dummy (result of credit analysis; successful = 1 and not successful = 0) along with six independent variables. In this method, the concerns are the coefficients and the signs in order to state the probability of credit approval. Statistical test reveals that simultaneously all independent variables have significant effects on credit approval. But partially, only owner’s capital and good relationships with the bank do affect the approval.