The impact between own capital, foreign capital, and business volume on small and medium enterprise

Abstract

The purpose of this study is to know whether there is impact of Own Capital, Foreign Capital, and Business Volume on Net Income. Research data in this study is secondary data and panel data. The data collected from the observation then are processed using multiple linear regression. This study uses data from the past 5 years, from 2015 – 2019. Observation result shows that Own Capital have significant on Small and Medium Enterprise (SME), Foreign Capital have significant on Small and Medium Enterprise (SME), Business Volume have significant influence on Small and Medium Enterprise (SME) and Own Capital, Foreign Capital and Business Volume have significant influence on Small and Medium Enterprise (SME). Therefore it is better for a business to balance between own capital or foreign capital so that the business is also more stable in the percentage of the road. Furthermore, of all the variables, there are 2 variables that have a significant positive influence is Own Capital and Foreign Capital, then there is 1 variable that has a significant negative effect is Business Volume. This possibility is influenced by the large number of Indonesian who have small and medium enterprise businesses based on their own capital and external capital to run their business.