Abstract
This study sheds light on the behavioral factors affecting Egyptian small and medium enterprise (SME) owner-managers’ intentions to take commercial bank loans from a consumer buyer behavior perspective. A conceptual model based on the theory of planned behavior postulates that SME owner-manager intentions are determined by Knowledge, Previous Experience, Perceptions, Attitude, Subjective Norms and Perceived Behavioral Control. Gender, age, knowledge and education are individual-level factors that potentially influence the latter relationship. Key company-level variables such as firm size, type, years in operation, growth orientation and owner-manager separation are explored. The study uses a mix of qualitative (interviews and focus group) and quantitative (survey and regression analysis) methods. The results show that intentions to take a commercial bank loan are low in Egypt and SME owner-managers have negative perceptions on the service quality of loan providers. Subjective norm and knowledge are the key factors that influence loan-taking intentions. Moreover, intentions vary according to certain demographic and company characteristics. Managerial and policy implications for financial institutions, governments and developmental organizations are drawn.