ANALYSIS OF PRODUCTION AND ENERGY RELATED FACTORS TOWARD HOUSEHOLD BUSINESS DEVELOPMETN IN NORTH SULAWESI

Abstract

Abstract: The MSMEs in the developing country is growing rapidly. MSMEs in Indonesia contributes 60% of Indonesia’s economic growth which is dominated by a micro and small businesses and household production is a part of MSMEs. As the inputs of the production process, energy become one of the important factors on the household business and its development. The objective of this research is to find out whether the production and energy related factors such as Monthly Units Produced, Income From Production, Energy Happiness and Reasons To Do Energy Saving partially affect to household business development. This research use quantitative method with ordinal regression analysis. The population in this research refers to the micro businesses level  from three different area in Sulawesi Utara (Minahasa, Tomohon and Bitung) and samples used in this study is 100 respondent who run household production. The results shows that three out of four variables are significantly affect the household business development, except monthly production. Recommendations concluded for this research are several such as learn more about financial management, calculating and estimated profits, also using separate energy between household activity and production.

Keywords: production and operations management, energy subsidies availability, household production, micro and small business enterprises