THE INFLUENCE OF THE GROWTH OF SMALL AND MEDIUM ENTERPRISES (SMEs) ON THE ECONOMIC GROWTH OF THE LABUHANBATU REGION

Abstract

Economic growth is a form of physical development that occurs in goods and services that are currently occurring in a country. Development in a region is one form of the concept and goal of national development. Developments that are often carried out in regions are one form that can show that Indonesia has moved to a more advanced level. One of the factors that can influence economic growth in Labuhan Batu is Small and Medium Enterprises (UKM), which is one of the business activities that has very broad business opportunities because Small and Medium Enterprises (SMEs) operate in all sectors of the economy, both agricultural and non agricultural. This research uses the literature study method. Based on data obtained from the Central Statistics Agency in Labuhanbatu district, the growth of Small and Medium Enterprises (UKM) has a big influence on economic growth in Labuhanbatu district. Results from respondents who are Small and Medium Enterprises stated that the existence of Small and Medium Enterprises (UKM) and the provision of training to them can help their economy. Thanks to the knowledge provided, they can manage their business even better. Then, with the various training carried out, they can be more creative and can develop their business ideas. because currently the selling value is not seen from the product or raw materials alone.