Investigating the Effect of E-Commerce, Capital and Labour on the Income of Micro, Small, and Medium Enterprises in Banda Aceh City, Indonesia

Abstract

Micro, Small, and Medium Enterprises (MSMEs) in Indonesia are increasingly growing and innovating along with the development of information technology. Aceh, especially Banda Aceh City, is one of Indonesia's regions where MSMEs experience annual growth. Thus, the objectives of this study were to analyze the influence of e-commerce, capital, and labour on MSME income in Banda Aceh City with quantitative research. The population of this study comprised business units registered with the Ministry of Cooperative and SMEs of Banda Aceh City, with 100 business units selected as the research sample. The sampling technique employed was cluster sampling. Data collection utilized a questionnaire, and the specific analysis technique applied was the multiple linear regression test. The study found that e-commerce, capital, and labour positively and significantly influence MSME income in Banda Aceh City. These findings suggest that policymakers should promote e-commerce adoption among MSMEs through training and infrastructure support, enhance access to capital through tailored financial schemes, and invest in labour skills development via vocational training and industry partnerships. By combining these measures, Banda Aceh City can bolster the growth and sustainability of its MSME sector, fostering increased income generation and economic development.