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Vol. 6 No. 3 (2026): September

Business Capital and Entrepreneurial Characteristics as Determinants of MSME Success: Evidence from Aur Village

https://doi.org/10.35912/ahrmr.v6.n3.p355-366.2026

Abstract

Purpose: This study aims to analyze and empirically examine the influence of business capital and entrepreneurial characteristics on the success of Micro, Small, and Medium Enterprises (MSMEs) in Kelurahan Aur.

Methodology: A quantitative causal design was employed, with the research location centered on the MSME ecosystem in Kelurahan Aur, Kecamatan Medan Maimun, Medan City. The population comprised 90 active MSME units, all of which were selected as samples through saturated sampling (a census). Data were analyzed using multiple linear regression with IBM SPSS Statistics (version 26).

Results: The findings indicate that both business capital and entrepreneurial characteristics partially exert positive and significant effects on MSME success. Simultaneously, both variables demonstrated a significant influence. The coefficient of determination (R²) of 0.883 reveals that 88.3% of the variation in business success is explained by the combined effect of these determinants.

Conclusions: MSME success requires synergy between sufficient business capital and strong entrepreneurial characteristics, with the latter emerging as the more dominant predictor of business resilience and sustainable growth.

Limitations: This study was geographically confined to a single sub-district, limiting the generalizability of its findings. Additionally, 11.7% of the variance remains unexplained, and the cross-sectional design only captures conditions at a specific point in time.

Contributions: This study encourages policymakers to design MSME assistance programs that not only focus on capital provision but also strengthen entrepreneurial character through incubators. Academically, this study contributes location-specific empirical evidence to the literature on micro-business success determinants at the grassroots level.

Keywords

Business Capital Business Success Entrepreneurial Characteristics MSMEs Multiple Linear Regression

How to Cite

Sutejo, B., Suryati, L., & Rinaldi, M. (2026). Business Capital and Entrepreneurial Characteristics as Determinants of MSME Success: Evidence from Aur Village. Annals of Human Resource Management Research, 6(3), 355–366. https://doi.org/10.35912/ahrmr.v6.n3.p355-366.2026

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Authors

1 Bambang Sutejo
Universitas Battuta, Medan, Indonesia
2 Lili Suryati
Universitas IBBI, Medan, Indonesia
3 Muammar Rinaldi
Universitas Negeri Medan, Medan, Indonesia

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Vol. 6 No. 3 (2026): September
Section: Articles
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