Capital Structure, Liquidity, Profit Growth, and Financial Performance of Culinary MSMEs Using Local Raw Materials

Pirdaus, Dede Irman
Suhaimi, Nurnisaa binti Abdullah
Sidiq, Fahmi

International Journal of Business, Economics, and Social Development
Vol. 5 No. 2 (2024)

This study examines the capital structure, liquidity, profit growth, and financial performance of micro, small, and medium-sized enterprises (MSMEs) in the culinary sector based on local raw materials in Tasikmalaya City. A quantitative research approach with a descriptive-analytical method was employed, analyzing data from 33 sampled MSMEs. The findings reveal that the majority of MSMEs maintain a satisfactory capital structure, adequate liquidity, and positive profit growth. Furthermore, the financial performance of these MSMEs, particularly in terms of profitability, is commendable. The study concludes that there is a positive relationship between capital structure, liquidity, profit growth, and financial performance in these MSMEs, highlighting the importance of effective management in achieving business success.