PEOPLE-BASED ECONOMIC DEVELOPMENT TRANSFORMATION IN EMPOWERING MICRO, SMALL, AND MEDIUM ENTERPRISES IN SOUTH SULAWESI. (MAKASSAR CITY CASE STUDY)
Makassar City is an attractive city with potential for developing trade in goods and services. The empowerment of SMEs and the tourism sector in Makassar significantly impacts economic growth, both individually and as a whole. This study aims to determine the role of small and medium enterprises (SMEs) in developing a people's economy. In this study, researchers focused on the variables of labor absorption, business capital, and the level of business profits obtained by SMEs, which are independent variables that influence community welfare. The results of this study, using the SPSS approach, provided statistical test results showing that all three variables have a positive and significant influence on community welfare (Y). These include: labor absorption (X1) with a coefficient of b1 = 2.019, followed by business capital (X2) with a coefficient of b2 = 2.546, and finally, business profit (X3) with a coefficient of b3 = 3.024. Meanwhile, in the partial (F) test, the labor absorption variable (X1) was the most dominant, followed by the business capital variable (X2) and business profit variable (X3), each of which influenced the level of community welfare (Y). Both partial and simultaneous tests using SPSS showed an influence of all three variables on community welfare, assuming other variables remained constant.
Transformation, Economy, Democracy, Empowerment, Economy.