Leveraging the Growth of Micro and Small Sector Businesses In Sidoarjo Regency: Antecedents of Social Media And Strengthening Management

Abstract

Objective: This research wants to test the influence of social media on strengthening management and business growth and examine the effect of strengthening management on business growth.

Design/methodology/approach: This research is included in the quantitative research category with an associative /explanatory approach and hypothesis testing. The unit of analysis in this research is micro and small business actors with a population of 186. The sample size in the research is 92. While Taking sample members from the population using a purposive sampling technique, the sample members are also referred to as respondents. The distribution of questionnaires was carried out over one month (1 June 2023 - 30 June 2023); 87 questionnaires were answered and filled in completely (94.57%); therefore, the data collected through this questionnaire was representative enough to represent the total population.

Findings: Testing with Path analysis shows that social media directly and significantly influences strengthening management and business growth with standardized coefficient values of 0.347 (sig. 0.039) and 0.324 (sig. 0.041), while strengthening management directly and significantly influences the growth of micro-businesses and small with a standardization coefficient value of 0.409 (sig. 0.46). The results of this test show that social media, which is used massively to explore market information and is carried out in a structured manner, will encourage optimal management development to provide an adequate contribution to strengthening management, which leads to the creation of sustainable creative behavior in managing micro and small businesses to be more effective and efficient, both in managing market access, implementing management functions, business processes, and business cycles, so as to leverage the growth of micro and small businesses for the better. Therefore, hypotheses H₁, H_2, and H₃ can be accepted because all the antecedents are tested to have a positive and significant influence with a significance figure below 0.05