Volume 20, Number 2, December 2025
| Constructing the Evaluation Model for Influencing Factors and Alternatives of Youth Entrepreneurship Loans |
Abstract
With the transformation of employment structures and the intensification of unemployment issues, young people’s willingness to start their own businesses has been steadily increasing. However, many entrepreneurs face the common challenge of insufficient funding during the early stages of their ventures. In response, the government has actively implemented various entrepreneurship loan programs and support policies to lower the barriers to entrepreneurship and promote the healthy development of the entrepreneurial ecosystem. Under these circumstances, it has become particularly important for banks to evaluate the potential factors influencing youth entrepreneurship loans. Therefore, this study aims to identify the key evaluation factors that banks should prioritize when assessing youth entrepreneurship loans to ensure the effective allocation of funds. Using the Analytic Network Process (ANP), the study finds that the most critical factor for banks is financial condition, as it directly reflects the borrower’s repayment ability and loan risk. The second most important factor is management capability, since sound management systems and operational competence help enhance business stability and debt repayment capacity. Finally, business prospects also play a significant role, as they allow banks to assess a company’s growth potential and market competitiveness. Overall, financial condition, management capability, and business prospects constitute the core criteria banks rely on when evaluating youth entrepreneurship loans.
Keywords: Small and Medium-Sized Enterprises (SMEs), Youth Entrepreneurship Loan, Analytic Network Process
JEL Classification: G21, L26