Analysis Of The Influence Of Umkm With The Existence Of Scale Up Impact On Economic Growth In Binjai City

Abstract

The economic sector in Indonesia is factually partly supported by the micro, small and medium enterprises (MSMEs)
sector. Micro, Small and Medium Enterprises (MSMEs) are one of the components of business actors that have a
considerable contribution in creating jobs in Indonesia. However, just like the business world, in the midst of the
development of the MSME sector, it also has its own obstacles, especially in terms of capital and management aspects,
so there is a need for Scale Up on MSMEs. This study aims to determine the influence of the number of MSMEs, labor
and production on economic growth in Binjai City. The data used is secondary data with the research method used is a
time series data analysis method with a multiple linear regression test using Eviews10 through tests of normality,
heteroscedasticity, autocorrelation, multicollinearity and research analysis techniques using Path Analysist tests. The
results showed that the variable number of MSMEs had a negative and significant effect, labor had a positive and
significant effect and production value had a positive, Local Tax had a positive and insignificant effect on economic
growth in Binjai City.