Abstract: The purpose of the research is to know and analyze the factors that influence the business growth of small and medium industry. Research sample is the earthenware vessels and ceramics unit industry in Kasongan, Bangunjiwo, Kasihan, Bantul, Province of Daerah Istimewa Yogyakarta (DIY). Data collection is done by survey and interview based on prepared questionnaire. Data is analyzed using econometric model settled with multiple regressions using ordinary least square (OLS) technique. The conclusion of the research is that the business growth of the earthenware vessels and ceramics craftsmen is positively and significantly influenced by: (1) firm size; in this case is the number of labor, and (2) firm age; or the age of the business had been operated. Moreover, the research is also prove that (1) there is positive and significant difference between the business units that incorporated and the ones that not or not-yet incorporated in influencing the business growth; (2) there is positive and significant difference between the business units that got the credit extension facility from bank and the ones that didnt in influencing the business growth; (3) there is positive and significant difference between the business units that exporting the goods and the ones that not or not-yet exporting in influencing the business growth.

Keywords: business growth, firm size, firm age, earthenware vessels and ceramics industry

Y. Sri Susilo, Fakultas Ekonomi Universitas Atma Jaya Yogyakarta, Jl. Babarsari No. 43 Yogyakarta 55281, Telp. (0274) 487711, PSW. 2232, Fax. (0274) 485227, Email: yss@fe.uajy.ac.id; yssusilo@gmail.com

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