Laras Fitri Aini Hasibuan, Bio Hasian Siregar, Hera Wati

The Effect Of Pricing Strategy and Business Capital on UMKM Income In Sidorejo Hilir Medan

Introduction

The effect of pricing strategy and business capital on umkm income in sidorejo hilir medan. Analyze pricing strategy & business capital's impact on MSME income in Sidorejo Hilir, Medan. Business capital significantly boosts income; pricing strategy doesn't. Insights for MSME growth.

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in the Indonesian economy, but still face various challenges that affect their income. This study aims to analyze the influence of pricing strategies and business capital on the income of MSMEs in Sidorejo Hilir, Medan. The research method used is a quantitative approach with data collection techniques through questionnaires given to 30 MSMEs as research samples. The data obtained were analyzed using multiple regression tests with the help of SPSS 23.0 software. The results of the study indicate that pricing strategies do not significantly affect MSME income, while business capital has a positive and significant effect on income. Simultaneously, pricing strategies and business capital have a significant influence on MSME income, with a contribution of 54.6%, while 45.4% is influenced by other factors not examined in this study. The results of this study provide insights for MSME actors to focus more on business strategies on business capital management to increase their income.

Review

This study investigates the critical influence of pricing strategies and business capital on the income of Micro, Small, and Medium Enterprises (MSMEs) in Sidorejo Hilir, Medan, a highly relevant topic given the strategic role of MSMEs in the Indonesian economy. Utilizing a quantitative approach, the researchers gathered data from 30 MSMEs through questionnaires and employed multiple regression analysis with SPSS 23.0. The clear objective and methodology provide a structured framework for understanding the factors affecting MSME financial performance within a specific local context. The findings reveal a nuanced picture: while pricing strategies independently do not significantly affect MSME income, business capital demonstrates a positive and significant influence. Crucially, when both factors are considered simultaneously, they exhibit a significant combined effect on MSME income, accounting for 54.6% of the variance. This suggests that capital management is a potent lever for income growth in this specific MSME segment. However, the relatively small sample size of 30 MSMEs, though common in localized studies, might limit the broader generalizability of these findings, and the 45.4% unexplained variance points to other significant, unexamined factors at play. The study offers valuable practical insights, advising MSME actors to prioritize business capital management as a key strategy to enhance their income. For future research, it would be beneficial to explore the unidentified 45.4% of factors influencing MSME income, potentially including aspects such as marketing effectiveness, technological adoption, human resource quality, or external market conditions. Expanding the sample size and scope to include a more diverse range of MSMEs or different geographical locations could also strengthen the external validity and provide a more comprehensive understanding of MSME dynamics across Indonesia.

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