INDIVIDUAL FACTORS, SOCIAL RELATIONS, UTILIZE SOCIAL MEDIA ON BUSINESS DEVELOPMENT

Abstract

Globalization and the development of information technology, the Micro, Small and Medium Enterprises sector has become the main pillar in driving the local economy. Garut Regency, West Java, has great potential in developing MSMEs which play an important role in job creation, economic growth and income distribution. There are challenges in optimizing the growth and sustainability of MSMEs in this area. This research aims to examine the influence of individual factors, social relationships, and the ability to utilize social media on the development of MSME businesses in Garut Regency. The method used is an explanation survey with a quantitative and qualitative approach (mixed methods). Quantitative data was collected through questionnaires, while qualitative data was obtained from Focus Group Discussions and in-depth interviews. The results of analysis using Structural Equation Modeling show that individual factors have an influence of 32.1%, social relations have an influence of 32.9%, and the ability to utilize social media has an influence of 35.9% on the development of MSME businesses in Garut Regency. Simultaneously, these three factors have an influence of 44% on business development. This research provides a basis for formulating more effective policies and programs to support the growth of MSMEs in Garut Regency.