Abstract:
The city of Makassar is considered one of the attractive and promising cities for the
development of trade in goods and services. Empowering micro, small, and medium
enterprises (MSMEs) and the tourism sector in Makassar significantly influences the
improvement of the economy, both at the individual and overall levels. This research
aims to determine the role of small and medium-sized enterprises in grassroots
economic development. In this study, the researcher focuses on variables such as
labor absorption, business capital, and the level of business profit obtained by
MSMEs, which are independent variables influencing community welfare. The
results of this research, using the SPSS approach, have provided statistical test
results indicating that all three variables positively and significantly influence
community welfare (Y). These variables include labor absorption (X1) with a
coefficient of b1 = 2.019, followed by business capital (X2) with a coefficient of b2 =
2.546, and the third variable, business profit (X3), with a coefficient of b3 = 3.024. In
the partial test (F), the labor absorption variable (X1) is the most dominant, followed
by the business capital variable (X2) and the business profit variable (X3), each
influencing the level of community welfare (Y). For the partial and simultaneous
tests using the SPSS system, there is an influence of these three variables on
community welfare, assuming that other variables remain constant.
