The Role of Internal and External Factors that Influence to Business Development on Entrepreneurs of Local Superior Products in Malang Regency

Abstract

The existence of small business enterprises has a strategic role in the national economy, especially for small business based on local superior products that can contribute to increasing income and growing economic activity in the region. This study aims to determine the influence of internal and external factors toward business development on small business in Malang. This research uses a survey approach, where the primary quantitative data through questionnaire was taken directly from 30 sample respondents of small business. This study also uses multiple linear regression analysis method supported by instrument testing, classic assumption testing, and individual hypothesis testing.  The results show that internal factors which include enterprise capital, quality of human resources, technology and equipment, marketing strategy, production system and financial management have significant effect to the business development. The external factors which include licensing, the policy of empowerment and loan submission procedures have significant effect to the business development.

Keywords: Internal factors; External factors; Business Development; Small Enterprise