Abstract

MSMEs are individual business entities consisting of micro, small and medium enterprises. MSMEs themselves make a significant contribution to increasing exports, increasing and equalizing income, forming national products and expanding employment opportunities. The existence of economic life in Indonesia is due to small businesses. So that MSMEs cannot be separated from national economic growth. This research aims to determine whether there is an influence of Entrepreneurial Character and Innovation Capability on Business Performance of MSMEs at the Keputih Culinary Tourism Center. This research uses a quantitative type of research. The sample used in this research was 35 business owners. Using a saturated sampling technique or census method, the data collection method uses a questionnaire. The data analysis techniques used in this research are classical assumption testing, multiple linear regression testing and hypothesis testing. The results of this research show that first, partially, entrepreneurial character has a significant effect on business performance. Second, partially Innovation Capability has a significant effect on Business Performance. Then, the results of the F Test show that Entrepreneurial Character and Innovation Capability together (simultaneously) have a significant effect on Business Performance of MSMEs at the Keputih Culinary Tourism Center, Surabaya. Therefore, business owners must pay attention to performance, such as approaches to employees and customers, researching new products and motivating employees to work together to achieve business targets or goals.

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