The Influence of Each Variable

Oct 13, 2025 by magicalceylontours.com 110 views

Introduction

The rattan industry in Indonesia has immense potential to drive economic growth and reduce poverty, particularly in regions where rattan is abundant. However, small rattan businesses often face numerous challenges, including limited access to capital and knowledge. This study aims to investigate the impact of banking credit, long business, and education level on the turnover of small rattan entrepreneurs in West Medan District. By understanding the factors that influence the success of these businesses, we can provide strategic recommendations to stakeholders to encourage the growth of small rattan businesses in the region.

Methodology

This study employed a mixed-methods approach, combining both primary and secondary data collection methods. Interviews, observations, and relevant questionnaires were used to gather data from small rattan entrepreneurs in West Medan District. The analysis method used was linear regression with the Ordinary Least Square (OLS) method through EViews 4.1 software. In this model, turnover became the dependent variable, while bank loans, business length, and education level were the independent variables.

Results

The results of the analysis showed that bank loans, business length, and education level had a significant effect on the turnover of small rattan entrepreneurs. The R-squared value of 0.98 indicates that 98% of the turnover variation can be explained by the three independent variables. This suggests that access to bank loans, experience in running a rattan business, and a higher level of education are crucial factors in determining the success of small rattan businesses.

The Influence of Each Variable

Banking Credit

Access to bank loans provides the capital needed to develop businesses, increase production, and expand the market. Credit also helps entrepreneurs overcome financial constraints that often hamper business growth. By providing a stable source of funding, bank loans enable small rattan entrepreneurs to invest in their businesses, improve their products, and reach a wider customer base.

Long Business

Experience in running a rattan business provides valuable knowledge and expertise. The longer the entrepreneur is in the rattan business, the more mature the strategy and business management, which has a positive impact on turnover. As entrepreneurs gain experience, they develop a deeper understanding of the market, their customers, and the industry as a whole. This enables them to make informed decisions, adapt to changes, and stay competitive.

Educational Level

A higher level of education provides the knowledge and skills needed to manage businesses more effectively. Education also helps entrepreneurs in understanding market opportunities, the latest trends, and how to utilize technology to improve production efficiency. By acquiring a higher level of education, small rattan entrepreneurs can develop the skills and knowledge necessary to succeed in the industry.

Strategic Recommendations

This study provides concrete evidence that factors such as bank loans, business length, and education level play an important role in determining the success of small rattan businesses. Based on the findings, the following strategic recommendations are made for stakeholders to encourage the growth of small rattan businesses in West Medan:

Increasing Access to Bank Loans

Low lending and flexible installment schemes can encourage small rattan entrepreneurs to develop their businesses. By providing accessible and affordable credit options, banks and financial institutions can help small rattan entrepreneurs overcome financial constraints and invest in their businesses.

Strengthening Training and Development Programs

Training programs that emphasize business management skills, marketing strategies, and technology utilization will be very beneficial for small rattan entrepreneurs. By providing training and development opportunities, stakeholders can help small rattan entrepreneurs acquire the skills and knowledge necessary to succeed in the industry.

Increasing Government Involvement

Government support through empowerment and capital facilitation programs can help small rattan entrepreneurs to compete in the market. By providing resources and support, the government can help small rattan entrepreneurs overcome challenges and achieve their goals.

Conclusion

By supporting small rattan entrepreneurs to access capital, improve skills, and take advantage of market opportunities, we can strengthen the small business sector of rattan and create a positive impact on the economy and the community in West Medan. This study provides a comprehensive understanding of the factors that influence the success of small rattan businesses and offers strategic recommendations for stakeholders to encourage the growth of small rattan businesses in the region.

Introduction

In our previous article, we explored the impact of banking credit, long business, and education level on the turnover of small rattan entrepreneurs in West Medan District. This article aims to provide a Q&A section to address common questions and concerns related to the study.

Q&A

Q: What is the significance of this study?

A: This study aims to investigate the factors that influence the success of small rattan businesses in West Medan District. By understanding these factors, we can provide strategic recommendations to stakeholders to encourage the growth of small rattan businesses in the region.

Q: What are the key findings of the study?

A: The study found that bank loans, business length, and education level have a significant effect on the turnover of small rattan entrepreneurs. The R-squared value of 0.98 indicates that 98% of the turnover variation can be explained by the three independent variables.

Q: How can bank loans help small rattan entrepreneurs?

A: Access to bank loans provides the capital needed to develop businesses, increase production, and expand the market. Credit also helps entrepreneurs overcome financial constraints that often hamper business growth.

Q: What is the importance of experience in running a rattan business?

A: Experience in running a rattan business provides valuable knowledge and expertise. The longer the entrepreneur is in the rattan business, the more mature the strategy and business management, which has a positive impact on turnover.

Q: How can education level help small rattan entrepreneurs?

A: A higher level of education provides the knowledge and skills needed to manage businesses more effectively. Education also helps entrepreneurs in understanding market opportunities, the latest trends, and how to utilize technology to improve production efficiency.

Q: What are the strategic recommendations for stakeholders to encourage the growth of small rattan businesses in West Medan?

A: The study recommends increasing access to bank loans, strengthening training and development programs, and increasing government involvement through empowerment and capital facilitation programs.

Q: How can stakeholders support small rattan entrepreneurs?

A: Stakeholders can support small rattan entrepreneurs by providing accessible and affordable credit options, training and development opportunities, and resources and support through government programs.

Q: What are the implications of this study for policymakers and stakeholders?

A: This study provides concrete evidence that factors such as bank loans, business length, and education level play an important role in determining the success of small rattan businesses. Policymakers and stakeholders can use this information to develop targeted interventions to support small rattan entrepreneurs and promote the growth of the small business sector in West Medan.

Conclusion

This Q&A section aims to address common questions and concerns related to the study. By understanding the factors that influence the success of small rattan businesses, we can provide strategic recommendations to stakeholders to encourage the growth of small rattan businesses in West Medan.