Model Analysis of Strengthening the Success and Sustainability of MSMEs in Pematang Siantar
Abstract
In building business, it is hoped that it will last for the long term. This is also what is expected in establishing an MSME, hoping for progress, obtaining superior performance, and being able to compete. Therefore, as an MSME actor, you must be able to know the many factors that can affect MSME performance. The main objective of this study was to determine the factors that influence the performance of SMEs in the food sector in Pematang Siantar City. This study uses a causal technique, sometimes known as causal research. MSMEs in Pematang Siantar City make up the entire population of this research. Furthermore, the population and sample are MSME actors in the food sector in Pematang Siantar City. The sampling technique is accidental sampling, where the sample includes 250 MSMEs spread across Pematang Siantar. The results showed that four factors influenced an MSME’s performance: perceived competitive value, perceived customer benefits, product innovation, and digital marketing, which were included in factor 1. Factor 2 includes financial literacy and business network, and factor 3 covers owner’s perception.
Keywords: perceived competitive value, perceived customer benefit, product innovation, financial literacy, business network, owner’s perception, digital marketing.
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