War affected youth as consumers of microcredit: An application and extension of the Theory of Planned Behaviour

• War affected youth׳s Positive Affect enhanced their Purchase Intentions of microcredit.
• War affected youth׳s Self-Identity increased their Purchase Intentions of microcredit.
• The youth׳s Perceived Deterrents negatively influenced Purchase Intentions of microcredit.
• Entrepreneurial Desire enhanced the association between Self-Identity and Purchase Intentions.
• Their Entrepreneurial Desire also directly predicted Purchase Intentions of Microcredit.

Youth in war-ravaged countries are particularly vulnerable, and one of their main challenges is finding employment. The majority of youth in such countries encounter limited access to capital supplied by traditional banking institutions. Thus, the purpose of this research is to identify war affected youth׳s Purchase Intentions of microcredit. The findings of this study will contribute towards encouraging youth in obtaining microcredit and fostering their entrepreneurial activities. The Theory of Planned Behaviour has been generally applied to predict Purchase Intentions, nevertheless we have used a modified version of this theory to design the conceptual model. 1603 responses were obtained from youth in war-affected areas of Sri Lanka. The findings revealed that Positive Affect and Self-Identity were predictors of Purchase Intentions; whereas Perceived Deterrents negatively influenced Purchase Intentions. Additionally, Entrepreneurial Desire seemed to enhance the association between Self-Identity and Purchase Intentions. Entrepreneurial Desire also directly influenced Purchase Intentions. Based on these findings, we have suggested implications to theory and practice so as to effectively market microcredit to youth in war-affected regions.