http://www.iaeme.com/IJM/index.asp 665 editor@iaeme.com International Journal of Management (IJM) Volume 11, Issue 6, June 2020, pp. 665-674, Article ID: IJM_11_06_055 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=6 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.11.6.2020.055 © IAEME Publication Scopus Indexed APPLICATION OF BUCKLEY’S FUZZY AHP TO IDENTIFY THE MOST IMPORTANT FACTOR AFFECTING THE UNORGANIZED MICRO- ENTREPRENEURS’ BORROWING DECISION R.L.N. Murty, Sivaji Ganesh Kondamudi, M.V. Suryanarayana and P. Giribabu Assistant Professor, GITAM - Gandhi Institute of Technology and Management, GITAM (Deemed to be) University, Visakhapatnam, India ABSTRACT Unorganized micro-entrepreneurs play an important role in economic development. They provide useful place utility to various goods in streets. They have limited funds and always dependent on external sources for their business expansion. Extant literature also tells us that the small business entrepreneurs’ financing decision is not same as corporate finance. Because, these people have no or limited access to the formal financial institutions to go for debt financing. In this context, we have reached out to several micro-entrepreneurs in India and identified seven most important factors affecting their borrowing decision. Then we have used Buckley’s AHP technique to figure out the most important factor relative to the other six factors. It turns out that repaying capacity is the most important factor that influences the decision of going for borrowed funds. This methodology and application to the field of micro-entrepreneurial finance is first of its kind and we also recommend policy holders to concentrate on providing easy access and tax carry forward to encourage micro-entrepreneurs in unorganized sector to access formal financial institutions for business funds. Key words: Fuzzy AHP, micro-entrepreneur’s financing decision, Buckley’s geometric mean method, Entrepreneurial financing, borrowed and owner’s funds Cite this Article: R.L.N. Murty, Sivaji Ganesh Kondamudi, M.V. Suryanarayana and P. Giribabu, Application of Buckley’s Fuzzy AHP to identify the most Important Factor Affecting the Unorganized Micro-Entrepreneurs’ Borrowing Decision. International Journal of Management, 11 (6), 2020, pp. 665-674. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=6 1. INTRODUCTION In many cases an entrepreneur has established a small firm to become self-employed and to avoid the control of outside directors. He or she may not solicit resources from external investors. Small firms usually confront a different and unique financing problem at every