Business activities in the food and beverage sector have become one of the jobs for the community. This business has a good position in supporting the economy. But until now it has not developed optimally and various problems have hampered the pace of this business. The purpose of this study was to determine the factors affecting business success of micro and small food and beverage enterprises in Banda Aceh by using the Multiple Regression Analysis model. The results shown that the enterprises characteristics and managerial abilities influence enterprises success, while business location factors do not affect enterprises success.

Анотація наукової статті з економіки і бізнесу, автор наукової роботи - Nurdin Diah Miranda, Safrida, Fajri


Область наук:
  • Економіка і бізнес
  • Рік видавництва: 2018
    Журнал: Russian Journal of Agricultural and Socio-Economic Sciences
    Наукова стаття на тему 'ANALYSIS OF FACTORS AFFECTING BUSINESS SUCCESS OF MICRO AND SMALL ENTERPRISES: A STUDY OF FOOD AND BEVERAGE ENTERPRISES IN BANDA ACEH'

    Текст наукової роботи на тему «ANALYSIS OF FACTORS AFFECTING BUSINESS SUCCESS OF MICRO AND SMALL ENTERPRISES: A STUDY OF FOOD AND BEVERAGE ENTERPRISES IN BANDA ACEH»

    ?DOI https://doi.org/10.18551/rjoas.2018-12.15

    ANALYSIS OF FACTORS AFFECTING BUSINESS SUCCESS OF MICRO AND SMALL ENTERPRISES: A STUDY OF FOOD AND BEVERAGE ENTERPRISES IN BANDA ACEH

    Nurdin Diah Miranda *

    Magister Program, Syiah Kuala University, Indonesia

    Safrida, Fajri

    Department of Agribusiness, Syiah Kuala University

    * E-mail: Ця електронна адреса захищена від спам-ботів. Вам потрібно увімкнути JavaScript, щоб побачити її.

    ABSTRACT

    Business activities in the food and beverage sector have become one of the jobs for the community. This business has a good position in supporting the economy. But until now it has not developed optimally and various problems have hampered the pace of this business. The purpose of this study was to determine the factors affecting business success of micro and small food and beverage enterprises in Banda Aceh by using the Multiple Regression Analysis model. The results shown that the enterprises characteristics and managerial abilities influence enterprises success, while business location factors do not affect enterprises success.

    KEY WORDS

    Enterprises characteristics, managerial ability, business location, enterprises success.

    Increasing population growth in each developing country was a major problem faced by every country, including Indonesia. Until now, every developing country still continues to make various ways and find solutions to utilize the advantages of untrained human resources for development, so as not to become a burden on the state but to become capital for development.

    Given the increasingly limited absorption of labor and the availability lack of employment in Indonesia, the best way to reduce unemployment in Indonesia is to create self employment or entrepreneurship.

    In recent years, the number of jobs available was less than the number of productive age. This causes young people to be required to create their own jobs by opening a business or becoming a business actor. One of them is to open a food and beverage business which is one of the Micro, Small and Medium Enterprises (MSME) sectors.

    Business activities in the food and beverage sector have become one of the jobs for the community. Banda Aceh is a famous region for diverse culinary tastes, so it becomes one of the interest of Acehnese residents and tourists visit Banda Aceh. Seeing the many enthusiasts of culinary delights, encouraging businesses to start their businesses by opening a food and beverage business even though they are still classified as small businesses in the informal sector.

    This business has a good position in the supporting economy. However, until now it has not developed optimally and various problems have hampered the pace of this business, including limited capital, weak enterprises behavioral characteristics, lack of managerial abilities, unavailability of decent business locations and business productivity. The purpose of this study was to determine factors affecting business success of micro and small food and beverage enterprises in Banda Aceh City.

    METHODS OF RESEARCH

    The location of study was carried out in Banda Aceh City, which is business activities of food and beverage enterprises were growing rapidly in Banda Aceh, which can be seen from

    many food and beverage enterprises in Banda Aceh such as restaurants, coffee shops, shops cake shop and others.

    The sample in this study was taken using the purposive sampling method. The number of samples to be studied is 30 respondents, which is the owners of food and beverage enterprises who directly sell their products to consumers, and considered successful in supporting family finances.

    The analytical model used is multiple regression analysis. The forms of multiple linear regression equations used in this study are as follows:

    Y = f (Xi, X2, X) (1)

    Furthermore, it can be explicitly stated in the Non Linear function as follows:

    Y = p0X1p1X2p2 X / 3 + e (2)

    Based on this function, it is transformed into a linear form by using natural logarithms (Ln) into the model so that the following equations were obtained:

    lnY = lnp0 + p1lnX1 + p2lnX2 + p3lnX3 (3)

    Where: Y = Enterprises success; X1 = Enterprises characteristics; X2 = Managerial ability; X3 = Business location; B0 = Intercept or constant; B1B2B3-B7 = Coefficient of regression; e = Error term.

    The F test was used to determine the magnitude of the effect of the independent variable (X) on the dependent variable (Y) simultaneously. With the criteria:

    • Distribution t with degrees of freedom (n - k);

    • If F search> F tab ^ at the 005 leve ^ then accept Ha and reject H °;

    • If F search> F tab ^ at the 005 leve ^ then accept Ho and reject Ha.

    The t test was used to determine the effect of the independent variable (X) on the dependent variable (Y) partially. With the criteria:

    • Distribution t with degrees of freedom (n - k);

    • If tsearch> ttable at the 0.05 level, then accept Ha and reject Ho;

    • If tsearch> ttable at the 0.05 level, then accept Ho and reject Ha.

    RESULTS OF STUDY

    Multiple Linear Regression Analysis. Based on the research data collected both for the dependent variable (Y) and the independent variable (X1, X2, X3) which is processed with the help of the SPSS v16 program, the results of multiple linear regression calculations were obtained as follows:

    Table 1 - Results of Regression Calculation

    Coefficientsa

    Model Unstandardized Coefficients Standardized Coefficients t Sig.

    B Std. Error Beta

    1 (Constant) .815 .756 1.078 .291

    LN X1 .236 .214 .228 2.410 .018

    LN X2 .543 .223 .452 2.439 .022

    LN X3 .042 .175 .043 .240 .812

    a. Dependent Variable: LN_Y.

    Source: Output SPSS v.16 (processed), 2018.

    From the table above, the regression equation can be seen as follows:

    LnY = ln? 0 +? 1lnX1 +? 2lnX2 +? 3lnX3 LnY = Ln 0,815 + 0,236 LnX1 + 0,543 LnX2 + 0,42 LnX3

    From the multiple regression equation mentioned above, it can be seen that all variable coefficients have a positive coefficient direction. Then an explanation can be given as follows:

    p0 = was a constant value and is positive, which means that if the three independent variables were constant, the value of enterprises success was 0.815. This means that if there was a change in the independent variables namely enterprises characteristics, managerial abilities and business location, the dependent variable will also change in the same direction.

    p1 = shown that enterprises characteristic variables have a positive effect on enterprises success. This was because that to build a business, entrepreneurs must have strong character.

    p2 = shown that managerial ability variables have a positive effect on enterprises success. Where a manager is required to have good managerial skills in terms of planning, organizing, implementing and controlling.

    p3 = shown that business location variables have a positive effect on enterprises success. This shown that the right and good business location, such as having easy location access, visibility or can be clearly seen, parking lots, having a large space, and a clean environment will have a role in helping entrepreneurs to introduce and attract consumers, and so the business they run will be visited.

    The R2 Test (Determination Coefficient). The results of the R square value of regression were used to find out how far the ability of enterprises success was influenced by the independent variables. The coefficient of determination can be seen in the following table:

    2

    Table 2 - Results of R Test (Determination Coefficient)

    Model R R Square Adjusted R Square Std. Error of them Estimate

    1 .522a .273 .189 .13287

    Predictors: (Constant), LN_X3, LN_X2, LN_X1 Source: Output SPSS v.16 (processed), 2018

    The results of the analysis shown that the value of R Square is 0.273. So it can be concluded the ability of the independent variables of enterprises characteristics, managerial ability and business location affect the dependent variable of enterprises success is 27.3%, while the remaining 78.7% was influenced by other variables outside the regression model.

    Simultaneous Test F. Simultaneous test or F test together to test the influence significance of enterprises characteristic variables (X1), managerial ability (X2) and business location (X3) together on the variable of enterprises success (Y).

    Table 3 - Simultaneous Results of F Test

    ANOVAb

    Model Sum of Squares DF Mean Square F Sig.

    1 Regression .172 3 .057 3.253 .038a

    Residual .459 26 .018

    Total .631 29

    a. Predictors: (Constant), LN_X3, LN_X2, LN_X1

    b. Dependent Variable: LN_Y

    Source: Output SPSS v.16 (processed), 2018

    Based on the results of the simultaneous test from the table above shown that Fcount was 3.253 while the results of Ftable in the distribution table with an error rate of 0.05 are 2.99. It means that Fcount> Ftable (3.253> 2.99), thus it can be concluded that the variables of enterprises characteristics, managerial ability and business location if tested together or simultaneously have a significant effect on enterprises success.

    Partial Test (T Test). To test the research hypothesis tested by the t test was a test to determine the significance of the influence of independent variables partially or individually explaining the dependent variable.

    Table 4 - Calculation Result Of T Test

    Variable Tcount Ttable Sig

    Enterprises characteristics 2,410 2,056 .018

    Managerial ability 2,439 2,056 .022

    Business location 0,240 2,056 .812

    Source: Primary data is processed, 2018.

    Variable enterprises characteristics (X1). The tcount for this variable is 2.410> ttable (2.056) and the significance value (0.018 <0.050), so it can be concluded that H1 was accepted which means that there was an influence of enterprises characteristics on the business success of micro and small in food and beverage enterprises. Hypothesis testing on this variable indicates a significant influence on business success.

    Variable managerial ability (X2). The tcount for this variable is 2.439> ttable (2.056) and the significance value (0.022 <0.050), so it can be concluded that H2 was accepted which means there was an influence of managerial ability on the business success of micro and small in food and beverage enterprises.

    Business location variables (X3). The tcount for this variable is 0.240 <ttable (2.056) and the significance value (0.812> 0.050), so it can be concluded that H3 was rejected which means there was no influence of business location on the business success of micro and small in food and beverage enterprises. Tested the hypothesis on this variable indicates that the location of the business has not always determine the success or failure of a business.

    CONCLUSION

    Based on the results of research and discussion, conclusions can be drawn as follows: From the regression calculation, the results of the simultaneous test or F test indicate that the hypothesis which states that the three independent variables namely enterprises characteristics, managerial abilities and business locations together have a significant effect on enterprises success. Based on the partial test or t test, the variables that influence enterprises success were enterprises characteristics and managerial abilities. It can be seen from the significance value obtained smaller than 0.05, which is 0.018 and 0.022 while the business location has not affect the business success because it has a significance value greater than 0.05, which is 0.812.

    From the three independent variables studied (enterprises characteristics, managerial ability and business location), managerial ability was the most positive variable influencing the dependent variable (entrepreneurial success) as evidenced by the beta coefficient value of 0.452. While the other two variables have an influence with the beta coefficient, namely the enterprises characteristics variable of 0.228 and the business location 0.043.

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    Ключові слова: Enterprises characteristics /managerial ability /business location /enterprises success

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