The Effect of Age, Sales Volume and Number of Employees on MSMe Business Performance in South Sulawesi, Indonesia

Z Abidin, NA Hamid, FR Zaenal - 2nd International Conference …, 2024 - atlantis-press.com
Z Abidin, NA Hamid, FR Zaenal
2nd International Conference on Democracy and Social Transformation …, 2024atlantis-press.com
Abstract Micro, Small, and Medium Enterprises (MSMEs) are vital business sectors
supporting a country's economy. The MSMEs sector absorbs a lot of labor and supports the
country's Gross Domestic Product (GDP), especially in developing countries. This study aims
to analyze the effect of age, sales volume, and the number of employees on business
performance in micro, small and medium enterprises (MSMEs) in South Sulawesi Province,
Indonesia. The locus of this research is in the province of South Sulawesi, Indonesia. The …
Abstract
Micro, Small, and Medium Enterprises (MSMEs) are vital business sectors supporting a country's economy. The MSMEs sector absorbs a lot of labor and supports the country's Gross Domestic Product (GDP), especially in developing countries. This study aims to analyze the effect of age, sales volume, and the number of employees on business performance in micro, small and medium enterprises (MSMEs) in South Sulawesi Province, Indonesia. The locus of this research is in the province of South Sulawesi, Indonesia. The research sample is 227 SMEs in South Sulawesi. This type of research is quantitative descriptive with multiple linear analysis using SPPS version 25. The results show that business age and the number of employees have a positive but not significant effect on MSME business performance in South Sulawesi, while sales volume has a positive and significant effect on MSME business performance in South Sulawesi. Business age, sales volume, and the number of employees together have a significant effect on business performance, with a determination (R2) of 42.6%. In comparison, 57.4% is influenced by variables not examined in this study. Sales Volume is the most influential variable on the business performance of MSMEs in South Sulawesi.
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