THE INFLUENCE OF LEADERSHIP AND INVESTMENT DECISIONS ON SMALL BUSINESS PERFORMANCE ON SMALL BUSINESS AGRO FOOD AND BEVERAGE IN WEST JAVA

Abstract

This study aims to gain findings and models of Leadership Influence, Investment Decisions, and Employee Work Productivity on Small Business Performance of foods and beverages agro-industry. The results of this research are expected to contribute to knowledge in economics, especially in the fields of management and entrepreneurship of small businesses and for the government and small entrepreneurs in Foods and Beverages agro-industry. This research was conducted in West Java with a sample size of 267 small agro-industries of foods and beverages. Respondents in this study were the owners as well as the managers of their own small businesses. Research methods used in this study were verificative and descriptive using quantitative approach. Data collection techniques used inthis study were interviewing respondents and distributing questionnaires. To measure the influence among each research variables, data were analyzed by applying structural equation model (SEM) and processed by using the LISREL program package. The conclusions of this research are as follows: leadership tended to focus on the person or employee orientation, therefore, it focused more attention to the family relations. Investment decisions in terms of operational ability appeared to be low, and therefore, the decision made was not accurate, and business performance was still low. This was reflected in lower sales and earnings gains. Leadership and Investment Decisions significantly and positively influenced Small Business Performance.