Abstract

SMEs have become the backbone of the national economy where MSMEs are a source of community income, helping to fulfill domestic goods and services and creating jobs. However, SMEs often experience obstacles in their development and even tend to have a high failure rate. There are many factors, both internal and external, that can hinder the growth of SMEs. This study aims to analyze the factors that hinder the growth of MSMEs to scale up in Tomohon City. The method used is descriptive quantitative with factor analysis techniques. The population in this study amounted to 3,906 MSMEs, while the number of samples was 100 SMEs which were calculated using the Slovin formula. As for the sampling technique using convenience sampling technique. Data collection was carried out by distributing questionnaires, with validity test result of Sig (2-tailed) < 0.05 and the reliability test result of Cronbach's Alpha value of 0.911 > 0.60. The results of this study indicate that there are 9 factors that can hinder the growth of SMEs in Tomohon City in the New Normal Era, which are human resource capabilities, infrastructure and technology, access to capital and market conditions, energy availability and wages, business location and political conditions, managerial capabilities, business processes and marketing, competition and production costs, production capacity and legality, and macro environment. The main factors hindering the growth of micro-businesses in Tomohon City during the new normal are the capabilities of human resources, infrastructure and technology with an explanatory variant of 29.927%.

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