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A MSME Productivity Model Using the Cobb Douglass Method and SWOT Analysis


Model Produktivitas UMKM dengan Metode Cobb Douglass dan Analisis SWOT

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DOI:

https://doi.org/10.21070/ups.3373

Keywords:

MSMEs, Productivity, Cobb Douglass, SWOT Analysis

Abstract

MSMEs, namely fashion bag production businesses, experienced a decline of 27% in 2021, because there no production process for 3 months due to Covid-19 and there no previous productivity index measurement. The aim of research is to measure productivity index and improvement strategies to increase productivity. Method used is Cobb Douglas, namely equation of relationship between dependent variable (Y) and independent variable (X). And SWOT analysis is a explain factors systematically and comprehensively by formulating various appropriate strategies. Test results showed production input elasticity value in 2020 was 0.310 (Σβ < 1), in 2021 was -0.148 (Σβ < 1), and in 2022 was 0.156 (Σβ < 1). This means production is a declining state (decreasing return to scale), additional production factors will produce additional output in smaller proportion. If production process increase input proportionally by
1%, will cause increase in output.

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2023-09-20

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