Factors Affecting the Profitability of Cowhide Crackers MSMEs in Magetan Regency

Abstract

There are 30 MSMEs in Magetan Regency that process leather into leather crackers spread across 5 sub-districts. Profit is a factor that affects the sustainability of this business. Many businesses have gone out of business due to fluctuating profits. Profits can be influenced by factors that support business activities including capital, labor costs, owner education, experience, and type of work. This study aims to analyze the factors that influence the profits of leather cracker MSMEs in Magetan Regency and conduct business analysis on leather cracker MSMEs in Magetan Regency. The basic research method is descriptive analysis. Data collection methods were carried out by conducting observations, interviews, and recording using questionnaires. The sample size was 30 respondents, namely owners of leather crackers MSMEs in Magetan Regency. Sampling was determined by purposive sampling. Data analysis using multiple linear regression analysis. The results showed that capital, labor costs, and owner education had a positive effect on the income of leather cracker MSMEs in Magetan Regency. The variables of business experience and type of work have no effect on the income of leather cracker MSMEs in Magetan Regency