International Journal of Financial, Accounting, and Management
Vol. 7 No. 3 (2025): December

The effect of legalization, financing, and provision of raw materials on the development of UMKM business in Palembang City

Putri, Aulia Utami (Unknown)
Mandasari, Lisa (Unknown)
Khairunnisyah, Tuty (Unknown)
Mirani, Dwi (Unknown)



Article Info

Publish Date
02 Dec 2025

Abstract

Purpose: The purpose of this study is to investigate the influence of legalization, financing, and raw material provision on the business development of MSME actors in Palembang City Methodology/approach: A quantitative approach was used, employing multiple linear regression analysis. The sample consisted of 92 MSME actors in Palembang City Results/findings: The results showed that legalization significantly impacts business development, with a t-value of 2.150 (greater than 1.660) and a significance value of 0.034 (less than 0.05). Financing also significantly affects business development, with a t-value of 2.101 (greater than 1.660) and a significance value of 0.038 (less than 0.05). The provision of raw materials significantly influences business development, with a t-value of 1.934 (greater than 1.660) and a significance value of 0.032 (less than 0.05). Based on the F-test, the calculated F-value of 3.695 exceeds the F-table value of 2.698 Conclusion: Indicating that the three factors (legalization, financing, and raw material provision) collectively and significantly affect business development. Limitations: The study is limited to MSME actors in Palembang City, which restricts the generalizability of the findings to other regions. Future research could include additional variables to provide a more comprehensive understanding. This study shows that 47.5% of business development is influenced by these factors, while the remaining 52.5% is influenced by other factors. Contribution: This research contributes by examining the simultaneous effects of legalization, financing, and raw material provision on MSME development in Palembang, providing valuable insights often overlooked in previous studies.

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Journal Info

Abbrev

ijfam

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

This journal is the leading international journal in the field of Financial, Accounting, and Management. International Journal of Financial, Accounting, and Management (IJFAM) comprises a multitude of activities which together form one of the world's fastest-growing international sectors. This ...