The Influence Of Technological Development, Business Competition, And Business Income On The Business Development Of Msme Entrepreneurs In Medan City In The Digitalization Era

Abstract

This study was conducted to analyze the influence of technological advancement, business competition, and business income on the business development of Micro, Small, and Medium Enterprises (MSMEs) in Medan City during the digitalization era. A quantitative approach with a causal associative research design was employed to examine the cause-and-effect relationships among the variables under investigation. The population consisted of 33 MSME owners, all of whom were included as research respondents using a census sampling technique. Data were collected through questionnaires and analyzed using multiple linear regression analysis. The findings reveal that technological advancement has a positive and significant effect on business development. Furthermore, business competition also exerts a positive and significant influence on business development. Likewise, business income demonstrates a positive and significant effect on business development. Simultaneously, technological advancement, business competition, and business income significantly affect the development of MSMEs. The coefficient of determination indicates that these three variables collectively explain 81.1% of the variation in business development, while the remaining 18.9% is attributed to other factors beyond the scope of this study.