THE INFLUENCE OF HOUSEHOLD EXPENSE, PRODUCTION DEPENDENCE ON ENERGY, AND DAILY ACTIVITY DEPENDENCE ON ENERGY TOWARD WILLINGNESS TO TAKE FINANCIAL RISK

Abstract

This research aims to investigate the influence of household expense, production dependence on energy, and daily activity dependence on energy, toward a willingness to take financial risk. This study uses a quantitative method with questionnaires used to collect the data. This research relied on an ordinal regression model with a sample of 100 respondents of Micro-Small and Medium Enterprises in North Sulawesi. The findings of this research shows that two out of three independent variables, namely, household expense and production dependence on energy, have significant effects on willingness to take financial risk. Meanwhile, daily activity dependence on energy does not have a significant effect on the willingness to take financial risk.

Keywords: MSMEs, Household Expense, Production Dependence on Energy, Daily Activity Dependence on Energy, Willingness to Take Financial Risk