Escalate : Economics and Business Journal
Vol. 1 No. 01: Strategic Adaptation for Sustainable Growth

Determinants of Labor Absorption in Micro, Small, and Medium Enterprises (MSMEs) in Jambi City

Muhammad Zhahran Shiddik (Universitas Jambi)
Heriberta (Universitas Jambi)
Hardiani (Universitas Jambi)



Article Info

Publish Date
06 Apr 2026

Abstract

Micro, Small, and Medium Enterprises (MSMEs), particularly in the culinary sector, play a vital role in labor absorption amid Indonesia's economic challenges, yet factors influencing this remain underexplored in Jambi City. This study aims to analyze the effects of capital access, education level, business duration, and technology utilization on labor absorption in culinary MSMEs there. It employs a quantitative survey method on a population of 14,583 registered culinary MSME actors, yielding 154 respondents via Slovin formula (5% error margin) and purposive sampling. Data from questionnaires were analyzed using SPSS 27 for classical assumption tests and multiple linear regression. Results reveal that all variables simultaneously affect labor absorption significantly (F=51.811, p=0.001; R²=0.582), but partially, only education level (t=2.140, p=0.034) and technology utilization (t=-14.348, p=0.001) show significant effects. Capital Access, Business Duration, Education Level, Labor Absorption, Technology Utilization

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Journal Info

Abbrev

escalate

Publisher

Subject

Economics, Econometrics & Finance

Description

Escalate invites both empirical and theoretical articles that explore micro and macro phenomena. The journals publication scope encompasses a wide array of domains, including macro and micro economics, business strategy and policy, entrepreneurship, finance and accounting studies, human resource ...