Mental budgeting and the financial management of small and medium entrepreneurs

Figures & data

Table 1. Mental budgeting scale

No. of items	Factors	Cronbach alpha
05	Reserving money for different expenses	0.75
04	Never spending more than a fixed amount	0.76
02	Spending on one thing and economizing on others	0.65
02	Spending less in the next month after spending this month	0.86

Source: Own survey, 2014

Table 2. Parameter estimates (a)

		Estimate^a	Wald	df^b	Sig.	95% Confidence interval
						Lower bound	Upper bound
Threshold	[FM mean = 2.25]	−0.287 (1.659)	0.030	1	0.863	−3.538	2.965
	[FM mean = 2.50]	0.848 (1.629)	0.271	1	0.602	−2.344	4.040
	[FM mean = 2.75]	1.252 (1.625)	0.594	1	0.441	−1.933	4.437
	[FM mean = 3.00]	2.041 (1.625)	1.579	1	0.209	−1.143	5.225
	[FM mean = 3.25]	2.961 (1.631)	3.315	1	0.069***	−0.227	6.166
	[FM mean = 3.50]	3.850 (1.640)	5.510	1	0.019**	0.635	7.065
	[FM mean = 3.75]	4.849 (1.652)	8.618	1	0.003*	1.612	8.086
	[FM mean = 4.00]	5.948 (1.668)	12.719	1	0.000*	2.679	9.216
	[FM mean = 4.25]	7.051 (1.702)	17.162	1	0.000*	3.715	10.387
	[FM mean = 4.50]	8.865 (1.932)	21.056	1	0.000*	5.078	12.651
Location	MB mean	0.609 (0.182)	11.191	1	0.001*	0.252	0.965
	Capital	3.288E (2.966E)	0.012	1	0.912	−5.485E	6.142E
	Worker	−0.002 (0.032)	0.006	1	0.940	−0.065	0.060
	Loan	4.244E (1.321E)	0.119	1	0.730	−1.988E	2.837E
	Duration	0.422 (1.384)	0.093	1	0.760	−2.292	3.137
	Ratei	−0.031 (0.022)	2.061	1	0.151	−0.074	0.011
	Contrthh	0.003 (0.006)	0.231	1	0.631	−0.008	0.014
	Othersi	0.635 (0.346)	3.368	1	0.066***	−0.043	1.313
	Engib	−0.002 (0.014)	0.020	1	0.889	−0.029	0.025
	Plnte	0.066 (0.203)	0.107	1	0.743	−0.331	0.464

Note: Link function: Logit, N = 201.

Source: Own Survey, 2014.

^a Pseudo R² = 0.115. Std. error in parenthesis.

^b Each Wald statistic is compared with a χ² distribution with 1 “df” to test whether the individual regression coefficient is zero given the other variables are in the model.

^* 1% significant level.

^** 5% significant level.

^*** 10% significant level.

Table 3. Parameter estimates (b)

		Estimate^a	Wald	df^b	Sig.	95% Confidence interval
						Lower bound	Upper bound
Threshold	[FM mean = 2.25]	−0.557 (1.262)	0.195	1	0.659	−3.031	1.916
	[FM mean = 2.50]	0.606 (1.227)	0.244	1	0.621	−1.799	3.012
	[FM mean = 2.75]	1.032 (1.225)	0.710	1	0.400	−1.369	3.432
	[FM mean = 3.00]	1.856 (1.228)	2.285	1	0.131	−0.550	4.262
	[FM mean = 3.25]	2.796 (1.237)	5.109	1	0.024**	0.372	5.220
	[FM mean = 3.50]	3.687 (1.247)	8.742	1	0.003*	1.243	6.131
	[FM mean = 3.75]	4.738 (1.259)	14.155	1	0.000*	2.270	7.206
	[FM mean = 4.00]	5.843 (1.278)	20.894	1	0.000*	3.337	8.348
	[FM mean = 4.25]	6.937 (1.322)	27.528	1	0.000*	4.345	9.528
	[FM mean = 4.50]	8.742 (1.608)	29.554	1	0.000*	5.590	11.894
Location	MB moneyreserve	0.167 (0.138)	1.467	1	0.226	−0.104	0.438
	MB fixedinlabel	0.220 (0.132)	2.763	1	0.096***	−0.039	0.479
	MB fungibility	0.045 (0.115)	0.154	1	0.695	−0.181	0.271
	MB spendingless	0.072 (0.102)	0.491	1	0.483	−0.129	0.272
	Overview	0.430 (0.139)	9.569	1	0.002*	0.158	0.702
	ST orientation	−0.142 (0.142)	1.002	1	0.317	−0.421	0.136
	LT orientation	0.367 (0.213)	2.964	1	0.085***	−0.051	0.786
	Finprdctknowledge	−0.461 (0.168)	7.497	1	0.006*	−0.791	−0.131

Note: Link function: Logit, N = 201.

Source: Own Survey, 2014.

^a Pseudo R² = 0.115. Std. error in parenthesis.

^b Each Wald statistic is compared with a χ² distribution with 1 “df” to test whether the individual regression coefficient is zero given the other variables are in the model.

^* 1% significant level.

^** 5% significant level.

^*** 10% significant level.

Table

		Capital	Worker	Loan amount	Interest rate	Other source	Contribution to HH in (%)	Business age	Other loan size	Loan duration
N	Valid	201	201	201	201	201	201	201	41	201
	Missing	0	0	0	0	0	0	0	160	0
Mean		1,749,875.6	4.03	214,328.36	19.39	1.48	76.01	11.14	525,365.85	1.01
Std. dev.		7,198,753.0	6.720	121,522.30	5.914	0.501	30.313	9.224	663,231.09	0.105
Skewness		12.876	8.203	2.633	0.859	0.090	−0.939	1.965	1.730	8.824
Std. error		0.172	0.172	0.172	0.172	0.172	0.172	0.172	0.369	0.172
Kurtosis		175.770	85.10	11.405	−0.922	−2.012	−0.303	4.774	2.375	78.949
Std. error		0.341	0.341	0.341	0.341	0.341	0.341	0.341	0.724	0.341
Range		100,000,000	80	940,000	19	1	100	54	2,700,000	1

Table

			Changes in sales volume			Total
			Same	Increasing	Decreasing
Loan from other FIs	Yes	0	8	23	12	43
	No	1	36	86	35	158
Total		1	44	109	47	201

Table

		Frequency	Percent	Valid percent	Cumulative percent
Valid	Yes	43	21.4	21.4	21.4
	No	158	78.6	78.6	100.0
	Total	201	100.0	100.0

Table

		Frequency	Percent	Valid percent	Cumulative percent
Valid		1	0.5	0.5	0.5
	Same	44	21.9	21.9	22.4
	Increasing	109	54.2	54.2	76.6
	Decreasing	47	23.4	23.4	100.0
	Total	201	100.0	100.0

Table

		Frequency	Percent	Valid percent	Cumulative percent
Valid	Yes	156	77.6	78.0	78.0
	No	41	20.4	20.5	98.5
	4	1	0.5	0.5	99.0
	5	1	0.5	0.5	99.5
	6	1	0.5	0.5	100.0
	Total	200	99.5	100.0
Missing	System	1	0.5
Total		201	100.0

Table

Model		Unstandardized coefficients		Standardized coefficients	t	Sig.	Collinearity statistics
		B	Std. Error	β			Tolerance	VIF
1	(Constant)	2.537	0.355		7.150	0.000
	MBmoneyreserve mean	0.047	0.040	0.093	1.180	0.240	0.729	1.372
	MBfixedinlabel mean	0.058	0.038	0.115	1.514	0.132	0.782	1.279
	MBfungibility mean	0.024	0.033	0.050	0.712	0.477	0.904	1.106
	MBspendingless mean	0.018	0.030	0.045	0.595	0.553	0.790	1.266
	Overview scale	0.111	0.040	0.193	2.791	0.006	0.944	1.060
	STorientation scale	−0.044	0.041	−0.078	−1.063	0.289	0.831	1.203
	LTorientation scale	0.100	0.062	0.120	1.616	0.108	0.821	1.218
	Finprdctknowledge scale	−0.098	0.048	−0.145	−2.022	0.045	0.879	1.138

^a Dependent variable: FMtotal mean.

Table

		N	Marginal percentage
FMtotal mean	2.25	6	3.0
	2.50	11	5.5
	2.75	7	3.5
	3.00	21	10.4
	3.25	36	17.9
	3.50	39	19.4
	3.75	39	19.4
	4.00	25	12.4
	4.25	11	5.5
	4.50	5	2.5
	6.00	1	0.5
Valid		201	100.0%
Missing		0
Total		201

Table

Model	−2 Log likelihood	χ^2	df	Sig.
Intercept only	843.240
Final	810.913	32.328	8	.000

Note:

Link function: Logit.

Table

	χ^2	df	Sig.
Pearson	2,216.876	1,992	0.000
Deviance	810.913	1,992	1.000

Note:

Link function: Logit.

Table

Cox and Snell	0.149
Nagelkerke	0.151
McFadden	0.038

Note:

Link function: Logit.

Table

		N	Marginal percentage
FMtotal mean	2.25	6	3.0
	2.50	11	5.5
	2.75	7	3.5
	3.00	21	10.5
	3.25	36	18.0
	3.50	39	19.5
	3.75	38	19.0
	4.00	25	12.5
	4.25	11	5.5
	4.50	5	2.5
	6.00	1	0.5
Valid		200	100.0
Missing		1
Total		201

Table

Model	−2 Log likelihood	χ^2	df	Sig.
Intercept Only	839.940
Final	815.962	23.978	10	0.008

Note:

Link function: Logit.

Table

	χ^2	df	Sig.
Pearson	2,203.710	1,980	0.000
Deviance	815.962	1,980	1.000

Note:

Link function: Logit.

Table

Cox and Snell	0.113
Nagelkerke	0.115
McFadden	0.029

Note:

Link function: Logit.

Table

Kaiser–Meyer–Olkin measure of sampling adequacy		0.500
Bartlett's test of sphericity	Approx. χ^2	52.349
	df	1
	Sig.	0.000