Abstract: SMEs share only 6.5% of Pakistan’s formal loan portfolio. A greater part of their finances are obtained from ROSCAs. This study, was intended to determine the impact of entrepreneurs’ education, age and years in business on their decision to use ROSCAs. Primary data obtained from responses of 433 SMEs to a questionnaire is used. The SMEs were randomly selected from market committees’ lists. The study found that entrepreneurs’ level of education had a positive correlation with the volume of investment in ROSCAs. It was also found that their ages did not have an impact. Entrepreneurs of all ages participated in ROSCAs equally. The study also established that entrepreneurs’ years in business had a positive correlation with ROSCAs. Entrepreneurs accumulate larger retained earnings and confidence in ROSCAs over time.