Abstract
The aim of this study is to determine SMEs’ intention towards formal sector and the impediments in the formalization of documentation process of the SMEs. This study approached 234 owners and managers of SMEs to examine the intention toward the adoption of formal sector. The study used convenience sampling technique which is deductive in nature. For the testing of hypotheses, regression and correlation analysis were applied. The empirical results of this study revealed that attitude, subjective norms, and perceived behavior have highly positive significant impact on SMEs owners and managers’ intention toward adoption of formal sector. The authors have also highlighted the limitations of this study.
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