EFFECT OF OWN CAPITAL, CAPITAL LOAN, TURNOVER SALES, AND USE OF HOURS TO PROFITABILITY (Empirical Study on The Actors SMEs Market Ngarsopuro Surakarta)

Abstract

This study aimed to analyze effect of equity capital, debt capital, sales omzet, and
utilization of working hours on profitability. This study using the census research with
44 respondents were SMEs in Ngarsopuro Market Surakarta. To test our hypotheses
using multiple regression analysis, data processing using SPSS. The results of this study
indicate that (1) equity capital have positive and significant effect on profitability, thus
hypothesis 1 supported. (2) debt capital have positive and significant effect on
profitability, thus hypothesis 2 supported. (3) sales omzet have positive and significant
effect on profitability, thus hypothesis 3 supported. (4) utilization of working hours have
not significant effect on profitability, thus hypothesis 4 rejected. SMEs in Ngarsopuro
Markets Surakarta suggested increasing the efficiency of inventory management,
advised to raise working capital through a capital increase itself or seek additional
foreign capital in the form of loans and improve financial and marketing management.
Keywords: equity capital, debt capital, sales omzet, utilization of working hours, profitability, SMEs