The Effect of Business Capital and Labor on the Development of MSMES Through BPUM in the Padang Sidempuan City on the Islamic Perspective

Abstract

This study analyzes the development path of MSMEs through business capital assistance funds, especially from the Government's Islamic economic perspective. The variables used in this study are business capital, labor and marketing.This research uses a quantitative type of research with statistical analysis. The research population is all MSMEs in padang Sidimpuan city which amounts to 10532 MSME actors. Determination of the sample using the Slovin formula. The variables used in this research consist of the variable Business capital (X1), the Labor variable (X2), the Marketing variable (Z), and the MSME Development variable (Y). The stages carried out in analysing the data of this study are as follows: 1. Descriptive Analysis. 2. Data Instrument Quality Analysis. 3. Analysis of Classical Assumptions. 4. Hypothesis Analysis and. 5. Path Analysis. The results showed that business capital, labor, had a positive influence on the marketing and development of MSMEs. the higher the business capital of msme actors, the better the marketing of an MSME. If the labor level of MSME actors is good, marketing will increase as well. the better the marketing of a business, the better the development of the business so that. If a business already has good business capital, the development of MSMEs is good .The main contribution of this study concern on the influence of BPUM (Banpres Productive Micro Enterprises) on the development of MSMEs is seen from the aspects of business capital, labor, and marketing in the city of Padang Sidimpuan.