FAKTOR-FAKTOR PENENTU KEBERHASILAN UMKM MELALUI PENDEKATAN FAKTOR INTERNAL DAN EKSTERNAL
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Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia's economic development; however, the failure rate of MSMEs remains high, especially within the first five years of operation. This study aims to analyze the internal and external factors influencing the success of MSMEs, focusing on enterprises in Bogor City. The research employed a descriptive qualitative approach using secondary data obtained from relevant journals and scientific literature. The results indicate that internal factors, such as human resource competencies, financial management, production and operational efficiency, and marketing strategies, significantly affect MSMEs' success. Moreover, external factors such as government policy support, socio-economic conditions, and the role of financial institutions also contribute significantly. These findings highlight that MSME success is not solely dependent on internal strength but is also directly influenced by external conditions. A determination coefficient of 46.9% confirms that nearly half of the variation in MSMEs' success can be explained by these factors. Furthermore, the study reveals that although access to financial institutions is essential, high loan interest rates can hinder profit growth. Therefore, future MSME development strategies should focus on strengthening internal capacities while optimizing external support to ensure business sustainability and growth.
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