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Factors Affecting the Performance of Small and Medium Enterprises (SME’s) in East Kalimantan

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Human resources competency (HR Competency), the role of local government, and the role of financial institutions were exogenous variables and SME’s performance was an endogenous variable. This study aims were to analyze and verify whether or not the influence of exogenous variables on endogenous variable. The type of data used was primary data and obtained through the spreading of questionnaires to 251 SME’s sample of respondents spread across 4 districts/cities in East Kalimantan i.e., Samarinda city, Kutai regency, Balikpapan city, and Paser regency. The collected data were analyzed by regression and correlation method with the SPSS tool version 17.0. The results of the analysis obtained the equation Y = 2.378 + 0.177X 1 + 0.015X 2 + 0.163X 3. The result of the t-test of the probability value indicates less than 0.05 it means that there were partially significant positive correlation between the competency HR variable, the role of financial institution to the performance of SME’s except the role of local government variable. While the F -test result shows sig value 0.000 a it means that there were simultaneously all three exogenous variables had a significant positive correlation on SME’s performance. Furthermore, the value of R square shows only 11.5%, it shows that the performance of SME’s is only 11.5% influenced by the HR competency variable, the role of local government, and the role of financial institution while 88.5% is influenced by other variables not discussed in this study.
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Keywords: Financial Institution; HR Competency; Local Government; SME’s Performance

Document Type: Research Article

Affiliations: Business Administration Department, Politeknik Negeri Samarinda (POLNES), East Kalimantan, Jl. Ciptomangunkusumo, Kampus Gunung Lipan, Samarinda, East Kalimantan, 75131, Indonesia

Publication date: July 1, 2018

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