Determinant of SMEs Income using Structural Equation Model (SEM)
Article Sidebar
Main Article Content
Abstract
Small and Medium Enterprises (SMEs) are business activities that can be carried out by everyone, as long as that person can manage and develop the business. SMEs also have a role in economic independence, which can later lead to national independence. SMEs in running their business are sure to be pursued is related to income and profits. The purpose of this study was to analyze how the direct effect of length of business and level of education on the income of Furniture SMEs in Menganti, Gresik, and the indirect effect of financial behavior as intervening variables. The study used 155 furniture SMEs in Menganti Gresik with financial behavior as an intervening variable. The exogenous variable uses the length of business and education level, and the endogenous variable is SME income. using Structured Equation Model (SEM). Based on the results of the study, it shows that each variable for its direct effect shows that all variables have an effect on endogenous variables, while for indirect it shows that financial behavior is capable of intervening between business length and income, and education level and income.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Afriza, Eka Sari Dana. (2021). Indonesian Small Medium Enterprise (Sme) Can Survive During Covid-19: Facts Or Illusions? International Journal of Business, Economics and Law, 24.
Amri, A. (2020). Dampak COVID-19 Terhadap UMKM di Indonesia. Jurnal Brand,123-130.
Arianti, Baiq Fitri. (2018). The Influence of Financial Literacy, Financial Behavior and Income On Investment Decision. Economics and Accounting Journal,1(1).
Dai, R., Feng, H., Hu, J., Jin, Q., Li, H., Wang, R., … Zhang, X. (2021). The impact of COVID-19 on small and medium-sized enterprises (SMEs): Evidence from two-wave phone surveys in China. China Economic Review, 67, 101607. doi:10.1016/j.chieco.2021.101607.
Eggers, F. (2020). Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research, 116, 199–208. doi:10.1016/j.jbusres.2020.05.025
Eniola, A. A. (2018). Entrepreneur-SME Manager Traits and Sources of Financing. African Entrepreneurship, 223–259. doi:10.1007/978-3-319-73700-3_10
Ghozali, Imam. (2019). Aplikasi Analisis Multivariete. Semarang: Universitas Diponegoro.
Khaddafi, Muammar., Aryani, Risa Aryani., & Heikal, Moh. (2021). The Effect of Financial Knowledge and Personal Net Income on The Financial Behavior of Malikussaleh University Employees with Locus Of Control As Moderating Variables. International Journal of Economic, Bussiness, Accounting, Agriculture Management and Sharia Administration, 1(1).
Mabenge, B. K., Ngorora-Madzimure, G. P. K., & Makanyeza, C. (2020). Dimensions of innovation and their effects on the performance of small and medium enterprises: the moderating role of firm’s age and size. Journal of Small Business & Entrepreneurship, 1–25. doi:10.1080/08276331.2020.1725727
Marfuah, Siti Turyani., & Hartiyah, Sri. (2019). Pengaruh Modal Sendiri, Kredit Usaha Rakyat (KUR), Teknologi, Lama Usaha, Dan Lokasi Usaha Terhadap Pendapatan Usaha. Journal of Economic,1.
Segura, Emilio Abad., & Zamar, Mariana-Daniela Gonzalez. (2019). Effects of Financial Education and Financial Literacy on Creative Entrepreneurship: A Worldwide Research. Educ. Sci. 2019, 9, 238; doi:10.3390/educsci9030238
Serrasqueiro, Z., Leitão, J., & Smallbone, D. (2018). Small- and medium-sized enterprises (SME) growth and financing sources: Before and after the financial crisis. Journal of Management & Organization, 1–16. doi:10.1017/jmo.14
Setiaji, Khasan., & Fatuniah, Ana Listia, (2018). Pengaruh Modal, Lama Usaha Dan Lokasi Terhadap Pendapatan Pedagang Pasar Pasca Relokasi. Jurnal Pendidikan Ekonomi dan Bisnis, 1, 1-14.
Sugiyono, (2019). Metode Penelitian Kuatitatif, Kualitatif dan R&D. Bandung: Alfabeta.
Wardati, N. K., & ER, M. (2019). The Impact of Social Media Usage on the Sales Process in Small and Medium Enterprises (SMEs): A Systematic Literature Review. Procedia Computer Science, 161, 976–983. doi:10.1016/j.procs.2019.11.207
Widyastuti, Umi., Sumiati, Ati., Herlitah, & Melati, Inaya Sari. (2020). Financial education, financial literacy, and financial Behaviour: What does really matter?. Management Science Letter, 10, 2715–2720.
Yoon G. Lee & Dustin, Lesli. (2021). Explaining Financial Satisfaction in Marriage: The Role of Financial Stress, Financial Knowledge, and Financial Behavior. Marriage & Family Review, DOI: 10.1080/01494929.2020.1865229.