Factors Affecting Decision Makers Preference of MSMEs in Financing Sources Choice

The study examined the choice of the different financing theories for explaining the capital structure ‎source of Micro, Small, and Medium Enterprises (MSMEs) that seeks to raise their capital, through ‎examining the affecting factors on the main capital structure decision. The study used a questionnaire distributed on ‎‎220 Palestinian MSMEs in order to examine the financing decisions in these firms according to the ‎main capital structure theories. The study found that in accord with the POT, it was confirmed an ‎approach comprising an initial check on the availability of internal resources, followed by the use of ‎internal capital. Where most of the sample were prefer to depend on personal money rather than ‎to increase their capital through the partners and loans. Therefore, this suggests the need to raise ‎awareness with regard to the concept of capital structure and the other determinations that affect ‎MSMEs' capital financing.‎