The effect of legalization, financing, and provision of raw materials on the development of UMKM business in Palembang City

https://doi.org/10.35912/ijfam.v7i3.2648
Published: Dec 2, 2025

Abstract:

Purpose: The purpose of this study is to investigate the influence of legalization, financing, and raw material provision on the business development of MSME actors in Palembang City

Methodology/approach: A quantitative approach was used, employing multiple linear regression analysis. The sample consisted of 92 MSME actors in Palembang City

Results/findings: The results showed that legalization significantly impacts business development, with a t-value of 2.150 (greater than 1.660) and a significance value of 0.034 (less than 0.05). Financing also significantly affects business development, with a t-value of 2.101 (greater than 1.660) and a significance value of 0.038 (less than 0.05). The provision of raw materials significantly influences business development, with a t-value of 1.934 (greater than 1.660) and a significance value of 0.032 (less than 0.05). Based on the F-test, the calculated F-value of 3.695 exceeds the F-table value of 2.698

Conclusion: Indicating that the three factors (legalization, financing, and raw material provision) collectively and significantly affect business development.

Limitations: The study is limited to MSME actors in Palembang City, which restricts the generalizability of the findings to other regions. Future research could include additional variables to provide a more comprehensive understanding. This study shows that 47.5% of business development is influenced by these factors, while the remaining 52.5% is influenced by other factors.

Contribution: This research contributes by examining the simultaneous effects of legalization, financing, and raw material provision on MSME development in Palembang, providing valuable insights often overlooked in previous studies.

Keywords:
1. Business development
2. Financing
3. Legalization
4. Preparation of raw materials
Authors:
1 . Aulia Utami Putri
Sriwijaya University, Indonesia
2 . Lisa Mandasari
Sriwijaya University, Indonesia
3 . Tuty Khairunnisyah
Sriwijaya University, Indonesia
4 . Dwi Mirani
Sriwijaya University, Indonesia
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How to Cite
Putri, A. U. ., Mandasari, L. ., Khairunnisyah, T. ., & Mirani, D. . (2025). The effect of legalization, financing, and provision of raw materials on the development of UMKM business in Palembang City. International Journal of Financial, Accounting, and Management, 7(3), 341–352. https://doi.org/10.35912/ijfam.v7i3.2648
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Issue & Section
Vol. 7 No. 3 (2025): December
Articles
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  1. Angeline, A., Allister, D., & Gunawan, L. L. (2022). Pengembangan UMKM Digital Sebagai Upaya Ketahanan Bisnis Pasca Pandemi Covid-19. Prosiding Serina, 2(1), 85-92.
  2. Anwar, M., Nugroho, H. W., Zatika, D. A., Lilyana, B., Yuniwati, Y., & Omega, J. A. (2023). Business Legality Training in the Context of Strengthening the Higher Education Entrepreneurship Ecosystem. Jurnal Pengabdian Masyarakat Formosa, 2(6), 421–430. doi:https://doi.org/10.55927/jpmf.v2i6.6979
  3. Arora, R. U. (2014). Access to finance: An empirical analysis. The European Journal of Development Research, 26, 798-814. doi:https://doi.org/10.1057/ejdr.2013.50
  4. Ashara, D. (2021). Pengaruh Modal Usaha, Karakteristik Wirausaha Dan Kualitas Laporan Keuangan Terhadap Perkembangan UMKM Di Desa Teluk Majelis Kabupaten Tanjung Jabung Timur. Manajemen Keuangan Syariah, 1(1), 32-47.
  5. Blongkod, R., Ilat, V., & Mawikere, L. (2023). Analisis Pengendalian Persediaan Bahan Baku Dengan Konsep Economic Order Quantity (Eoq) Pada Cv Bregas Likupang Timur Minahasa Utara. Going Concern: Jurnal Riset Akuntansi, 18(1), 45-55.
  6. Bollaert, H., Lopez-de-Silanes, F., & Schwienbacher, A. (2021). Fintech and access to finance. Journal of Corporate Finance, 68, 101941. doi:https://doi.org/10.1016/j.jcorpfin.2021.101941
  7. Dyan, V. (2020). Development Of Food Msme Entrepreneurs Policy During And Post Covid-19 Pandemy. Jurnal Analis Kebijakan, 4(2).
  8. Ermanovida, E., Khairunnisyah, T., & Putri, A. U. (2022). Pemetaan Dan Penguatan Digital Marketing Dalam Pengembangan Usaha Kuliner Khas Sebagai Potensi Wisata Kabupaten Ogan Ilir: Penerbit Perkumpulan Rumah Cemerlang Indonesia.
  9. Faluthi, R. A. (2022). Pengendalian Persediaan Bahan Baku Kain Pada Perusahaan Seven Inc.
  10. Faraswandi, I. (2019). Pengaruh Akses Pembiayaan Terhadap Pertumbuhan Ukm Di Kabupaten Gowa Dengan Literasi Keuangan Sebagai Variabel Moderating. Universitas Islam Negeri Alauddin Makassae.
  11. Fatimah, S., Yahya, M., & Hisan, K. (2021). Pengaruh Modal Usaha, Kualitas Sumber Daya Manusia, dan Strategi Pemasaran Terhadap Pengembangan UMKM di Kecamatan Kota Kualasimpang Kabupaten Aceh Tamiang. JIM: Jurnal Ilmiah Mahasiswa, 151-172.
  12. Fiqhiyyah, N., Wahyudi, L. K., Erlinda, N., & Sholikin, W. (2023). Analysis of the Legality and Role of Licensing Agencies in Macro and Small Business Management in Indonesia. Proceedings of Islamic Economics, Business, and Philanthropy, 2(2), 121-139.
  13. Khan, R., & Das, A. (2017). Build better chatbots: a complete guide to getting started with chatbots. New York: Apress.
  14. Kusmanto, H., & Warjio, W. (2019). Pentingnya legalitas usaha bagi usaha mikro kecil dan menengah. Jupiis: Jurnal Pendidikan Ilmu-Ilmu Sosial, 11(2), 324-327. doi:https://doi.org/10.24114/jupiis.v11i2.13583
  15. Labibah, H. A., & Sahrudin, A. R. N. (2022). Business Legality Assistance for Small and Medium Enterprise as An Effort to Protect the Law in the Context of Post-Pandemic Economic Recovery. ABDIMAS: Jurnal Pengabdian Masyarakat, 5(2), 2518-2523. doi:https://doi.org/10.35568/abdimas.v5i2.2546
  16. Lubis, P. S. I., & Salsabila, R. (2024). Peran UMKM (Usaha Mikro, Kecil, Dan Menengah) Dalam Meningkatkan Pembangunan Ekonomi Di Indonesia. MUQADDIMAH: Jurnal Ekonomi, Manajemen, Akuntansi Dan Bisnis, 2(2), 91-110. doi:https://doi.org/10.59246/muqaddimah.v2i2.716
  17. Manurung, N. D., & Diana, N. (2024). Pentingnya Pengembangan Manajemen Dan Legalitas Usaha “Jahe Merah Omar” Asli Bangka. Jurnal Ilmiah Wahana Pendidikan, 10(2), 697-702. doi:https://doi.org/10.5281/zenodo.10494895
  18. Maryanti, S. (2017). Manajemen usaha kecil. Depublish. Yogyakarta.
  19. Natasya, C. A., Fitriyani, L., Rukmini, P. A., Santi, S., & Suherman, U. (2024). Analisis Manajemen Persediaan Bahan Baku Pada UMKM Rengginang Berlian Kriuk di Karawang. Lokawati : Jurnal Penelitian Manajemen Dan Inovasi Riset, 2(2), 188–196. doi:https://doi.org/10.61132/lokawati.v2i2.656
  20. Oluleye, F. A., & Oyetayo, O. (2010). Raw Materials Development and Utilisation in Nigeria: Promoting Effective Linkage between R&D and SMEs for Economic Growth and Development.
  21. Putri, A. U., & Khairunnisyah, T. (2021). Strategi Pemberdayaan Ekonomi Pengrajin Songket Khas Kabupaten Ogan Ilir. Jurnal Kebijakan Pembangunan, 16(2), 141-153. doi:https://doi.org/10.47441/jkp.v16i2.154
  22. Soimah, N., & Imelda, D. Q. (2023). Urgensi legalitas usaha bagi umkm. Jurnal Benuanta, 2(1), 21-25. doi:https://doi.org/10.61323/jb.v2i1.47
  23. Sudaryanto, R., & Wijayanti, R. R. (2013). Strategi pemberdayaan UMKM menghadapi pasar bebas Asean. Pusat Kebijakan Ekonomi Makro. Badan Kebijakan Fiskal. Kementerian Keuangan, Jakarta, 16(1), 1-32.
  24. Supriatna, D., Candra, E., Adinugroho, I., Nasution, M. A., & Yanti, N. (2023). Pengaruh Kinerja UMKM Terhadap Pertumbuhan Ekonomi Kabupaten Sukabumi. Sanskara Ekonomi Dan Kewirausahaan, 1(02), 43-53. doi:https://doi.org/10.58812/sek.v1i02.88
  25. Wenno, M., & Ladjin, N. (2024). The Influence of Access to Finance, Government Support, and Industry Collaboration on the Success of Cikarang Start-up. West Science Journal Economic and Entrepreneurship, 2(2), 145–156. doi:https://doi.org/10.58812/wsjee.v2i02.895