HOW DO SERVICE QUALITY, SUPPORT, AND CAPITAL IMPACT THE SUCCESS OF MSME BUSINESSES?
Abstract
In the third quarter of 2022, Indonesia's national economic growth increased by 5.72%, with MSMEs accounting for 99% of all business units. However, MSMEs face challenges in terms of capital, and by the end of 2022, there was a 15.56% increase in financing from Islamic financial institutions. This study aims to analyze the impact of service quality, support, and capital on the success of MSME businesses that are customers of Islamic banks in Malang Regency. A quantitative correlational approach was used, involving 75 respondents as the sample, with data collected through questionnaires. The findings show that service quality, support, and capital collectively have a positive and significant effect on the success of MSMEs. Individually, service quality, support, and capital also influence the success of MSME businesses. It is important to note that the service quality in this study differs from the dimensions used in conventional institutions.
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