Analysis of Factors Affecting the Income of Micro, Small and Medium Enterprises (MSMEs) in the Culinary Sector in Tebing Tinggi City

Abstract

This study aims to determine the factors that affect the income of Micro, Small and Medium Enterprises (SMEs) culinary sector in the city of Tebing Tinggi in addition, purpose of this study in particular is to analyze the influence of Business Capital, number of workers, length of business, and Digital marketing and income of Micro, Small and Medium Enterprises (SMEs) culinary sector in Tebing Tinggi. This research uses Structural Equation Model (SEM) based on Partial Least Square (PLS). PLS is a structural equation modeling (SEM) based on components or variants. The results of this study indicate that the influence of capital on income through production means that large or small amounts of inventory can affect the efficiency of trial and working capital at the time of production so that it affects the acquisition of revenue. Then there is the influence of capital on income through production with a p-Value < 0.05 (0.000 < 0.05). and there is a direct long-term effect of effort on income with P-Values < 0.05 (0.001 < 0.05). and there is a direct influence of Digital marketing on revenue with P-Values < 0.05 (0.036 < 0.05). Keywords: Income, Production, Capital, Long-Term Business and Digital Marketing