The Influence Of Social Media Usage On The Probability Of MSMEs In Palopo City

Abstract

This study aims to analyze the influence of social media use on the profitability of Micro, Small, and Medium Enterprises (MSMEs). Using a quantitative approach with a purposive sampling method, the study involved 80 MSME respondents who actively use social media for business promotion. Data were analyzed using simple linear regression, supported by classical assumption tests including normality, linearity, and homoscedasticity. The linearity test showed a significance value of 0.749 > 0.05 and an F-test of 0.481 < F-table 2.50, indicating a linear relationship between social media use and profitability. The normality test produced a significance value of 0.102 > 0.05, confirming that the data were normally distributed. The homoscedasticity test yielded a significance value of 0.682 > 0.05, showing that the model met the assumption of constant variance. The regression equation obtained was Y = 33.872 + 0.010X + e, with a positive coefficient of 0.010, meaning that each one-unit increase in social media usage increases profitability by 0.010 units. The t-test results (t = 7.769, Sig. = 0.000 < 0.05) indicate that social media use has a significant positive effect on profitability. Therefore, effective utilization of social media is a crucial factor in improving MSME financial performance in the digital era.