The Influence of Micro Business Credit (KUR) Financing and the Industrial Revolution 4.0 on the Development of Micro, Small and Medium Enterprises (MSMEs) in Pematang Serai Village Through Financial Management

Abstract

The growth and development of Micro, Small and Medium Enterprises (MSMEs) in rural areas have an important role in strengthening the local economy and improving community welfare. This study aims to measure the impact of two important factors, namely Micro Business Credit (KUR) Financing and the Industrial Revolution 4.0, on the growth of MSMEs in Pematang Serai Village with a focus on the agricultural sector. The sample of this study involved 30 MSME actors who received KUR financing in Pematang Serai Village. The research method used was a survey with primary data collection techniques through questionnaires distributed to MSME owners in the village. Data analysis was carried out using multiple linear regression to test the research hypothesis with the SmartPLS software tool. The results of the study indicate that there is an influence of financing on financial management, there is an influence of financing on the development of MSMEs, there is an influence of the industrial revolution on financial management, there is an influence of the industrial revolution on the development of MSMEs, there is an influence of financial management on the development of MSMEs. For the financing variable, it affects the development of MSMEs through financial management. The industrial revolution variable affects the development of MSMEs through financial management.