The Success of Micro, Small, and Medium Enterprises (MSMEs) in Central Banjarmasin District Viewed from the Aspects of Business Capital and Social Media.

Abstract

Micro, Small, and Medium Enterprises (MSMEs) in Banjarmasin Tengah District play an essential role as drivers of the local economy and contributors to community welfare, as they provide employment opportunities and serve as a source of income for many families. However, various challenges still hinder business success, particularly limited capital, which restricts the ability of business owners to expand their ventures, improve product quality, and innovate. In addition, the suboptimal use of social media causes some MSMEs to experience declining income and difficulties in retaining customers amid increasing competition. Based on these conditions, this study aims to analyze the influence of capital and the use of social media on the business success of MSMEs in Banjarmasin Tengah, both partially and simultaneously. This research also carries novelty in its specific focus on MSMEs in a region that has not been widely studied and in its finding that capital plays a more dominant role than social media, which contrasts with many previous studies emphasizing digital marketing as a key determinant of business performance. The study employs a quantitative approach with a field research design, involving 120 MSME owners from 12 subdistricts. Data were collected through questionnaires and analyzed using multiple linear regression to examine the influence of each variable. The results show that capital has a significant effect with a T-value of 1.738 > T-table 1.657, while social media use is not significant as its t-value of 1.325 < T-table 1.657. Simultaneously, both variables significantly affect business success with an F-value of 4.367 > F-table 3.07 and an R² of 0.69, indicating that 69% of business success is explained by capital and social media, while the rest is influenced by other factors such as product quality, location, experience, service, and customer networks.