| Issue |
E3S Web Conf.
Volume 361, 2022
3rd International Conference on Agribusiness and Rural Development (IConARD 2022)
|
|
|---|---|---|
| Article Number | 01019 | |
| Number of page(s) | 9 | |
| Section | Agribusiness | |
| DOI | https://doi.org/10.1051/e3sconf/202236101019 | |
| Published online | 29 November 2022 | |
The Factors Affecting Business Innovation to Improve the MSME Competitiveness in Medan City
1 Agribusiness Department, Universitas Muhammadiyah Sumatera Utara, 20238 Medan-Sumatera Utara, Indonesia
2 Agribusiness Department, Universitas Medan Area, 20112 Medan-Sumatera Utara, Indonesia
The development of Micro, Small, and Medium Enterprises (MSMEs) in Medan is still unstable. This condition is related to limited working capital, low-quality human resources in accessing information and managing capital, weaknesses in obtaining market opportunities and increasing market share, and limited product marketing. The latest innovations are needed to increase the MSMEs' competitiveness. This study aims to analyze the performance of MSMEs to increase competitiveness and determine the effect of innovation on MSMEs in Medan. The study included 20 business actors from Medan Johor, Medan Sunggal, Medan Denai, and Medan Marelan. This study uses a quantitative descriptive method with purposive sampling. The respondents were based on agribusiness in culinary and processed derivative products. Data were analyzed using a Likert scale and binary logistic regression. The results showed that business actors' performance by analyzing opportunities to increase competitiveness resulted in a very good category. The highest results were on certification indicator, while the lowest were on service indicator. Meanwhile, the factors influencing MSME innovation were level of education and information technology. The results recommend that government should train Medan City MSMEs in online sales applications to increase their market share. Furthermore, to support a more accessible certification and licensing process, BPOM should socialize more with business actors.
© The Authors, published by EDP Sciences, 2022
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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