ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KEBERLANGSUNGAN USAHA PADA UMKM CAFE DI KOTA MEDAN

Abstract

This study aims to analyze the factors influencing business sustainability among café MSMEs in Medan City, particularly through the variables of promotion, price competition, and product innovation. The background of this study is based on the rapid growth of the culinary industry, especially cafés, which is accompanied by increasing competition, requiring business actors to implement appropriate strategies to survive. The main problem identified is the decline in the number of customers and sales in many café MSMEs, which is presumed to be influenced by suboptimal promotion, inappropriate pricing strategies, and low levels of product innovation. This study employs a quantitative approach using a survey method by distributing questionnaires to café MSME owners in Medan City. The data analysis technique used is multiple linear regression analysis to examine the effect of each independent variable on business sustainability, both partially and simultaneously. The results show that promotion, price competition, and product innovation have an influence on the sustainability of café MSMEs. Simultaneously, these three variables contribute to enhancing the ability of businesses to survive and grow amid intense competition. These findings indicate that café MSME owners need to improve promotional effectiveness, set competitive prices, and continuously innovate their products in order to maintain long-term business sustainability.
Keywords: Business Sustainability, Promotion, Price Competition, Product Innovation, Café MSMEs.