THE ANALYSIS OF HUMAN CAPITAL BUILDING, FINANCIAL ASSISTANCE, FACILITIES AND INFRASTRUCTURE SUPPORT, GOVERNMENT POLICY ON SMALL MEDIUM ENTERPRISES DEVELOPMENT IN RURAL AREA MANADO AND MINAHASA

Abstract

The existence of Small Medium Enterprises (SMEs) plays an important role to the economy of Indonesia. SMEs have been developed rapidly and have a significant contribution to the economic growth, national income and creating job employment. SMEs even play a powerful role during the economic crisis. In rural areas, SMEs are also related to the local economic performance. The creation and development of sustainable local businesses that generate jobs and create economic opportunities are vital for rural area in increasing income and employment. This research is designed to analyze the four proponents including human capital building, financial assistance, facilities and infrastructure support, and government policy on small medium enterprises development in rural area of Manado and Minahasa. This research is a quantitative research that associative with multiple linear regression analysis technique. The population in this study is the developed small medium enterprises in rural area of Manado and Minahasa, whereas the sample of respondents are 100 rural entrepreneurs who are owner of small medium enterprises. The result of this research shows that there is significant simultaneous and partial influence of Human Capital Building, Financial Assistance, Facilities & Infrastructure support, and government policy on small medium enterprises development in rural area of Manado and Minahasa. Therefore, to enhance the development of SMEs in rural area of Manado and Minahasa these four proponents should be considered intensively.

 

Keywords: small medium enterprises, human capital, financial assistance