Original Research Article
Year: 2020 | Month: April | Volume: 7 | Issue: 4 | Pages: 123-132
Characteristics of Entrepreneurship and Cost Management towards Income Growth of SMEs in Medan-North Sumatera, Indonesia
Dwi Saraswati
Universitas Pembangunan Pance Budi, Department of Accounting, Faculty of Social Sciences, Medan, North Sumatera, Indonesia
ABSTRACT
The purpose of this study is to examine whether entrepreneurial characteristics and cost management are related to income growth. The population of this study is small and medium enterprises (SMEs), through a quota sampling technique, a sample unit drawn from a population with specific characteristics up to the expected number of 217 respondents.Data were analyzed using the SEM-PLS approach with a series of tests, analyzing the Structural Model (Inner Model), Measurement Model (Outer Model) and hypothesis testing.The results of this study found that the characteristics of enterprises have a strong impact on income growth. The more positive characteristics of enterprises, the more helpful it is for entrepreneurs to increase their income. Entrepreneur characteristics measured from several aspects of income-generating practices. Likewise, cost management has an impact on increasing SMEs' income. Inability to provide reliable cost management, or delay in doing so, the potential and opportunities available will not be optimal. Even in the long run, this will lead to two extreme axes, business continuity will be hampered and the risk of failure if the business owner chooses to exit the current market, and prefers to invest in fixed-income instruments, which is theoretically lower. Entrepreneurial awareness that goes back to cost management needs good support, and the methods planned to realize it must be the right method
Keywords: Characteristics, Entrepreneurs, Cost Management, Income Growth, Partial Least Squares
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