Same Old Story: The Role of Capital and Labor to SME Performance

This study has developed an analysis model of factors that affect the MSME business performance. The subject of this study was the fish MSME cluster in Sragen Regency. The agricultural sector MSME cluster is a strategic economic sector because it is related to food security in Indonesia. Apart from that, the fish MSME cluster in Sragen Regency is one of the MSME clusters that has the potential to be developed into a source of economic growth in the district. This study has examined the effect of capital and labor management on business performance in fisheries MSMEs. This study used a quantitative design by developing a multivariate statistical model with 2 independent variables, namely the number of workers and production costs, as well as one independent variable, namely the performance of MSME businesses as measured by production results or harvests, sales turnover, profits. and MSME assets. This study was undertaken on the fisheries MSME cluster in Sragen using the census sampling method with the same number of respondents as the population, namely 68 fisheries MSMEs. The finding has indicated that capital management as measured by production costs and number of workers has varying influences on business performance. Management of production costs has a positive effect on harvest results, sales, profits and increase in MSME business assets, while the number of workers only affects harvest results and business profits.