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Analysis of SME's Industry Influence on Economic Growth in Indonesia

The research was titled "The Role of SME industry to economic growth in Indonesia. The purpose of this research is to determine the extent to which the role of the SME industry affects Indonesia's economic growth. This study saw the influence of independent variables i.e. the number of SME units, manpower, investments, and export of SMEs (intervening variables) on dependent variables of the GDP value in Indonesia. This research hypothesis shows that business units, labor, investments, and exports of SMEs have a positive and significant influence on the economic growth in Indonesia. This type of research is quantitative descriptive research using secondary data. The secondary data used comes from the statistics central Agency data. The method of data analysis used is Path Analysis in estimating the results of his research. In testing the suitability of the model, a classic assumption test is used that is the test of normality and multicollinearity test. The purpose of this research is to analyze the influence of the number of SMEs, the influence of the number of SME workers, investment influence and the influence of export from the SME sector to the Indonesian economy. From the results of the research known that the variable SME units, the number of SME workers, investment and export of SMEs as intervening variables affect the variable GDP. Overall the SME sector can affect Indonesia's economic development.