摘要：Finance is a basic need to run a business and the need of external financing isalso required during the business cycle, expansion, growth etc. In thisresearch, Retail Business Owners (RBO’s) were being questioned to find outthe reasons for their preference on informal financing rather on formalfinancing. Karachi was the sample population to investigate the rational ofthis research. Test of Proportion and Test of Association found that lowinterest rate, religious restriction and documentation are the major reason forpreferring informal financing over formal financing.
关键词：Retail business; Small business; financing choice; informal financing; formal;financing; bank financing
