The Influence of Business Capital, Promotion, and Length of Business on MSME Income (Case Study of the Manco Cake Home Industry in Tambakmas Village, Kebonsari, Madiun)
Abstract
This study aims to analyze the extent to which business capital, promotion, and business duration impact the income of Micro, Small, and Medium Enterprises (MSMEs) in the home industry of manco cakes in Tambakmas Village, Kebonsari District, Madiun Regency. The study used a quantitative approach with a survey method by distributing questionnaires to 34 MSME respondents who were determined using a saturated sampling technique. Data were analyzed using multiple linear regression with the help of SPSS, preceded by validity tests, reliability tests, descriptive statistical tests, and classical assumption tests (normality, multicollinearity, and heteroscedasticity). The results showed that all instrument items were declared valid and reliable. Simultaneously, business capital, promotion, and business duration had a significant effect on MSME income with a calculated F value of 24.711 and a significance of 0.000, and were able to explain 71.2% of the variation in MSME income (R Square = 0.712). Partially, only the business duration variable significantly influences MSME income (Sig. = 0.000; β = 0.740), while business capital (Sig. = 0.428) and promotion (Sig. = 0.948) do not show a significant effect partially. This finding indicates that business experience is a dominant factor in determining income levels in traditional product-based MSMEs, while capital and promotion have not provided significant contributions individually in the context of this study.
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