Analysis of the Impact of the Small and Medium Enterprises (UKM) Credit Program on Local Economic Growth

Abstract

The economic development of a region or a country is an important milestone in maintaining stability and sustainable growth. So research on the impact of small and medium business credit programs on the local economy is very important to do. The purpose of this study is to analyze the impact of the SME lending program on local economic growth and examine the role of micro, small and medium enterprises (MSMEs) in local economic growth. With these two objectives in mind, this research will help dig deeper into the relationship between SME lending programs and local economic growth, as well as understand the important role played by MSMEs in driving economic development at the regional level. This research is a research with empirical study method with a quantitative approach. The type of research to be conducted is causal research. The data source used in this study consists of secondary data, which refers to data that has been collected previously and has been archived. The analytical tool used is Simple Linear Regression Hypothesis Test. The analytical tool used in this study is regression analysis, which analyzes the effect of the independent variables on the dependent variable. The results of this study, namely the calculation results obtained a coefficient value of 0.025 with a significantly greater value of 1.97> 0.05. Meanwhile, based on the t test variable MSME growth shows that the significant value has a significant value of 1.97 > 0.05. From the basis of decision making if the significance level exceeds 5% or equivalent to 0.05, then the null hypothesis (Ho) is accepted while the alternative hypothesis (Ha) is rejected. Thus, it can be concluded that there is no significant influence between the development of Micro, Small and Medium Enterprises (MSMEs) on economic growth.