Abstract:
Makassar City is an attractive city and has potential for developing goods and services trading businesses.
Empowerment of SMEs and the tourism sector in the city of Makassar has a significant effect on improving the
economy both individually and as a whole. This research aims to determine the role of small and medium
enterprises in people's economic development. In this study, researchers focus 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 research using the SPSS approach have provided static test results where
the three variables have a positive and significant influence on community welfare (Y), including; labor absorption
(X1) with a coefficient value b1 = 2.019, then next is the business capital variable (X2) with a coefficient b2 =
2.546. And the third is the operating profit variable (X3) b3 of =3.024. Meanwhile, in the partial test (F), the labor
absorption variable (For partial tests and simultaneous tests with the SPSS system, there is an influence of these
three variables on community welfare with the assumption that the other variables are constant.
