Effectiveness of Business Legality on Brand Awareness of MSME Products

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are essential to the Indonesian economy. With the most significant employment, making MSMEs the most crucial element in the wheels of the community's economy, where the majority of business actors constitute the most significant percentage in Indonesia, but MSME actors often experience problems, namely the lack of understanding of the importance of business legality for the sustainability of their business or low sensitivity to brands or brand awareness. This study aims to empirically test the effectiveness of the influence of business legality on brand awareness. The research method used is a correlative quantitative research method with a cross-sectional approach. The population consists of MSME members in the MSME gallery of the Central Java Province SME Cooperative Office. The research sample consisted of 100 respondents selected through a purposive sampling technique. Data collection through distributing Google form questionnaires and data analysis using Smart PLS version 4, data analysis using Partial Least Square (PLS). The results of this study indicate that business legality has a positive and significant effect on brand awareness.