Abstract
This research aims to determine the role of external factors influencing the growth of MSMEs in supporting sustainable development. Of the 2365 MSME owners in the District of Sawan, a sample of 343 respondents was determined using the Slovin’s formula. Data were obtained through interviews and questionnaires using multiple regression analysis techniques. Results of the study proves that (1) the level of education and the capital has a partially significant influence on the competitiveness of MSME businesses in the District of Sawan while technology has no significant effect; (2) the level of education, capital, and technology has a significant influence on the competitiveness of the MSMEs in the Subdistrict of Sawan; and (3) the magnitude of the effect of the level of education, capital, and technology to power the competitiveness of SMEs is at 51.3%, while 48.7% are influenced by variables that were not tested in the study. Keywords: MSME, sustainable development, economic growth
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