Leadership and Work Environment: The Impact on the Performance of MSME Employees in Tegal City

Abstract

MSMEs in Indonesia have a very important role, we can said that they are the backbone of the Indonesian economy. Based on BPS data, about 99% of existing business units are MSMEs, which able to absorb about 96.3% of the workforce from the number of productive workers available. In order to maintain and grow up their business, MSME owners need to have a strong leadership spirit in guiding their employees so as to produce positive performance. A decent work environment should also be considered so that MSME employees will feel comfortable workplace which can ultimately achieve the expected performance. But in fact, many employees sometimes were not got attention from their owner. Then, work environment were not comfortable to work. The study was conducted to prove the influence of leadership and work environment on the performance of MSME employees in Tegal City. Samples was obtained from purposive sampling method and data was collected through observations, interviews, and questionnaires. Data analysis method used multiple linear regression analysis. The result proved that significantly, leadership and work environment had influence on the performance of MSME employees in Tegal City, both partially and simultaneously.