The factors that affecting the participation bank preferences of SMEs: The case of Çankırı

Scientists and top management of banks have always wondered how SMEs choose the banks they prefer to work with. When looking at the studies in the literature, the effective factors in banks' reaching more customers and their efforts to keep existing customers are examined from time to time. Participation Banking, which entered the Turkish Banking and Finance sector in the 1980s, is also an important topic. Participation banking is an alternative to interest banks for individuals and SMEs. Businesses prefer to work with participation banks; they are institutions that do not work with interest banks, but need to use their existing savings and need financing. In this study, 517 SMEs were considered, and the required data were collected through the survey method. After determining that 467 of the collected 517 questionnaires are suitable for analysis, factors affecting SMEs' participation banking preferences and their knowledge, awareness, and perception levels about participation banking terms and services were investigated. In the study's application, independent samples t-test and one-way ANOVA tests were used using the SPSS program. As a result of the study, it has been determined that the religion factor and the accessibility of participation banks are essential factors in SMEs' participation banking preferences. Simultaneously, it was observed that participation banks should explain their products and services to their customers in a more explicit language.