MSME Financial Strategy: Synergy of Business Capital and Cost Control in Driving Revenue Growth through Profitability as a Mediating Variable
Strategi Keuangan UMKM: Sinergi Modal Usaha dan Pengendalian Biaya dalam Mendorong Pertumbuhan Pendapatan melalui Profitabilitas Sebagai Variabel Mediasi
DOI:
https://doi.org/10.21070/ups.10003Keywords:
Business Capital, Cost Control, profitability, Revenue, MSMEsAbstract
This study examines the effect of business capital and cost control on revenue growth of Micro, Small, and Medium Enterprises (MSMEs) in the trade sector of Pasuruan Regency, with profitability as a mediating variable. An associative quantitative approach was applied using panel data from 400 MSMEs during 2023–2024. Data were analyzed using a Fixed Effects Model (FEM) and the Sobel test with EViews 13. The results show that business capital has a positive and significant effect on revenue growth, while cost control has a negative and significant effect, indicating that excessive cost efficiency may hinder business expansion. Business capital positively affects profitability, whereas cost control negatively affects profitability. Profitability also has a negative and significant effect on revenue growth. The Sobel test indicates that profitability does not mediate the relationship between business capital and cost control on revenue growth, implying that both variables have a direct effect.
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