Analysis of the Effect of Variables on Income

Oct 13, 2025 by thesweetdesigns.com 132 views

Introduction

Petisah Market in Medan is one of the busiest trading centers in the region, where thousands of traders engage in transactions every day. The market's vibrant atmosphere and high trading volume make it an ideal location for researchers to study the factors that influence the income of traders. This study aims to analyze the determinants of traders' income in Petisah Market Medan, with a focus on understanding how variables such as capital, labor, and business age contribute to traders' income.

Methodology

The study employed the Ordinary Least Square (OLS) method with cross-sectional data, involving 360 traders as the population and 78 traders as the sample. The dependent variable in this study is traders' income (Y), while the independent variables consist of capital (X1), labor (X2), and business age (X3). The study aimed to examine the relationship between these independent variables and traders' income.

Results

The results of the study showed that all independent variables had a significant influence on traders' income, with a R² value of 0.520596 or 52.06 percent. This indicates that 52.06 percent of traders' income is influenced by capital, labor, and business age, while the remaining 47.94 percent is influenced by other immeasurable factors (μ = error term).

Analysis of the Effect of Variables on Income

The study conducted overall testing (overall test) to examine the combined effect of the independent variables on traders' income. The results showed that the independent variables have a positive effect on traders' income with a confidence level of 99%. This suggests that when capital, labor, and business age increase, traders' income also tends to increase.

Furthermore, the study conducted partial testing (partial test) to examine the individual effect of each independent variable on traders' income. The results showed that each independent variable has a positive impact on traders' income with a confidence level of 99%.

Capital (X1)

Capital is the main factor that can increase the capacity and business potential of traders. Traders who have more capital tend to provide more goods and services, which ultimately attract more buyers. The availability of capital enables traders to invest in inventory, equipment, and other resources necessary for business operations. As a result, traders with more capital tend to have higher income.

Labor (X2)

Labor also plays an important role in determining the income of traders. The amount and quality of adequate labor can increase operational efficiency, as well as services to consumers, which results in increased income. Traders who have skilled and experienced labor tend to have higher productivity and efficiency, leading to increased income.

Business Age (X3)

Business Age is often an indicator of experience and network relations in business. Longer businesses usually have more loyal customers and are more able to face competition. As businesses age, they tend to develop a reputation and build relationships with suppliers, customers, and other stakeholders. This can lead to increased income as businesses become more established and reputable.

Conclusion

This study revealed that capital, labor, and business age significantly affect the income of traders in the Petisah Medan Market. Therefore, it is essential for traders to pay attention to these three factors in managing their business. Efforts to increase capital through loans or investment, development of labor skills, and build a good business reputation in line with increasing business age is a strategic step that can be taken to increase income. By paying attention to these factors, it is expected that the income of traders in Petisah Market can increase sustainably and contribute to the local economy.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase capital: Traders should strive to increase their capital through loans or investment to expand their business operations and increase their income.
Develop labor skills: Traders should invest in developing the skills and experience of their labor to increase operational efficiency and productivity.
Build business reputation: Traders should focus on building a good business reputation by developing a strong brand, providing excellent customer service, and establishing relationships with suppliers and customers.
Monitor and adjust: Traders should regularly monitor their business performance and adjust their strategies accordingly to ensure that they are on track to meet their income goals.

By implementing these recommendations, traders in Petisah Market can increase their income and contribute to the local economy.

Introduction

The study on determinants of traders' income in Petisah Market Medan has generated significant interest among traders, researchers, and policymakers. To address the questions and concerns of our readers, we have compiled a list of frequently asked questions (FAQs) and answers.

Q1: What are the main determinants of traders' income in Petisah Market Medan?

A1: The main determinants of traders' income in Petisah Market Medan are capital, labor, and business age. These factors have a significant impact on traders' income, with capital being the most influential.

Q2: How does capital affect traders' income?

A2: Capital has a positive impact on traders' income. Traders with more capital tend to provide more goods and services, which ultimately attract more buyers. The availability of capital enables traders to invest in inventory, equipment, and other resources necessary for business operations.

Q3: What is the role of labor in determining traders' income?

A3: Labor plays a crucial role in determining traders' income. The amount and quality of adequate labor can increase operational efficiency, as well as services to consumers, which results in increased income. Traders who have skilled and experienced labor tend to have higher productivity and efficiency.

Q4: How does business age affect traders' income?

A4: Business age is often an indicator of experience and network relations in business. Longer businesses usually have more loyal customers and are more able to face competition. As businesses age, they tend to develop a reputation and build relationships with suppliers, customers, and other stakeholders.

Q5: What are the implications of the study for traders in Petisah Market Medan?

A5: The study highlights the importance of capital, labor, and business age in determining traders' income. Traders should focus on increasing their capital, developing their labor skills, and building a good business reputation to increase their income.

Q6: How can traders in Petisah Market Medan increase their income?

A6: Traders can increase their income by:

Increasing capital through loans or investment
Developing labor skills and experience
Building a good business reputation
Monitoring and adjusting their business strategies regularly

Q7: What are the limitations of the study?

A7: The study has several limitations, including:

The sample size is relatively small
The study only focuses on Petisah Market Medan
The study does not account for other factors that may influence traders' income

Q8: What are the future research directions?

A8: Future research directions include:

Conducting a larger-scale study to confirm the findings
Examining the impact of other factors on traders' income
Investigating the effectiveness of strategies to increase traders' income

Conclusion

The study on determinants of traders' income in Petisah Market Medan has provided valuable insights into the factors that influence traders' income. By understanding these factors, traders can develop strategies to increase their income and contribute to the local economy. We hope that this FAQ article has addressed the questions and concerns of our readers and provided a better understanding of the study's findings.