The Role Of SME on Sanitair Industry in Reducing Unemployment in Regional Area of Malang City

Abstract

Small and medium enterprise that is well-known as SME has become the backbone of the economy sinceit has the power to generate more opportunities in today economies that is faced with critical challenges in employment. In general, the development of SMEs cannot be separated from various obstacles and problems encountered, as well as faced by the craftsmen who are members of the Industrial Center Malang sanitary. The mixed research methods combine both quantitative and qualitative research techniques with related methods, approaches, languages or concepts in a single study. Sampling technique also used is purposive sampling technique. Furthermore, the data were analyzed using regression analysis with the help of E-views program version 4.1 using OLS (Ordinary Least Squares) method.The results showed that the variable amount of labor, wages, output value, number of business unit, investment value, and sales volume that has significant influence on the absorption of labor in Sukun sub district - Malang.