The Influence of Business Capital and Labor on the Income of Micro, Small, and Medium Enterprises (MSMEs) in Sukadamai Village, Ujungbatu District

Devina Safa Falisa; Susanti; Nurhayati

doi:10.0000/JMEBIS.v1.i3.a49

Authors

Devina Safa Falisa Accounting Study Program, Faculty of Economics, University of Pasir Pengaraian, Indonesia Author
Susanti Accounting Study Program, Faculty of Economics, University of Pasir Pengaraian, Indonesia Author
Nurhayati Accounting Study Program, Faculty of Economics, University of Pasir Pengaraian, Indonesia Author

DOI:

https://doi.org/10.0000/JMEBIS.v1.i3.a49

Keywords:

business capital, labor, income, MSMEs

Abstract

This study aims to analyze the effect of business capital and labor on the income of Micro, Small, and Medium Enterprises (MSMEs) in Sukadamai Village, Ujungbatu District, Rokan Hulu Regency, both partially and simultaneously. The research employs a quantitative associative approach. The population comprised 444 MSMEs, with a sample of 82 MSMEs determined through accidental sampling and the Slovin formula at a 10% margin of error. Data were collected via a Likert-scale questionnaire and analyzed using multiple linear regression with SPSS, following validity, reliability, and classical assumption tests (normality, multicollinearity, heteroscedasticity). The regression equation obtained was Y = 11.763 + 0.144X1 + 0.439X2. The t-test showed that business capital had no significant partial effect on MSME income (t = 1.395; p = 0.167), whereas labor had a significant positive effect (t = 2.752; p = 0.007). The F-test showed that business capital and labor simultaneously had a significant effect on MSME income (F = 6.050; p = 0.004), with an Adjusted R² of 0.111 (11.1%). These findings suggest that the quality and productivity of labor are more decisive for MSME income than the amount of capital alone, since capital gains have limited effect without adequate marketing capability, managerial skill, and market conditions. This study offers practical implications for MSME actors and village government in designing capacity-building and workforce-development programs to enhance MSME income in Sukadamai Village.

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