Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

The Effect of Profitability and Growth on Micro Small and Medium Enterprise (MSME) Capital Structure with The Size of The Company as a Control Variable

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2305573,
        author={Ahmad Zubaidi Indra and Basuki  Wibowo and Sari Indah Oktanti Sembiring and Mega  Metalia},
        title={The Effect of Profitability and Growth on Micro Small and Medium Enterprise (MSME) Capital Structure with The Size of The Company as a Control Variable},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={msme profitability growth capital structure},
        doi={10.4108/eai.1-10-2020.2305573}
    }
    
  • Ahmad Zubaidi Indra
    Basuki Wibowo
    Sari Indah Oktanti Sembiring
    Mega Metalia
    Year: 2021
    The Effect of Profitability and Growth on Micro Small and Medium Enterprise (MSME) Capital Structure with The Size of The Company as a Control Variable
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2305573
Ahmad Zubaidi Indra1,*, Basuki Wibowo1, Sari Indah Oktanti Sembiring1, Mega Metalia1
  • 1: Universitas Lampung
*Contact email: zubaidiindra@yahoo.com

Abstract

MSME is one of the drivers of the economy today. However, limited capital can be a limiting factor for the growth of MSMEs. Errors in decision making regarding the composition of debt will affect business operations. This study aims to examine the effect of profitability and growth on MSME capital structure with company size as a control variable during 2017-2019. With quantitative descriptive methods, this study examines the financial statements of the MSME Lampung Province available at Bank Mandiri Lampung in the 2017-2019 period. Samples that met the criteria of 34 MSME units and were processed using SPSS resulted in the finding that profitability had a non- significant positive effect on MSME capital structure and growth had a significant positive effect on MSME capital structure.