Break Even Point Analysis of Profitability of Micro, Small and Medium Enterprises in Blora District

Abstract

Indonesia's economic growth is greatly influenced by the role of Micro, Small, and Medium Enterprises (MSMEs), but many MSMEs have not achieved optimal profitability due to the lack of proper application of financial analysis, especially Break Even Point (BEP) analysis. This study aims to analyze the effect of BEP on the profitability of MSMEs in Blora Regency. The method used is quantitative with a descriptive and analytical approach, where primary data is collected through closed questionnaires from MSMEs selected by purposive sampling. The independent variable in this study is BEP, while the dependent variable is profitability as measured by net profit and profit margin. Data analysis was carried out using descriptive analysis and linear regression to test the relationship between variables. The results of the study indicate that BEP has a significant effect on the profitability of MSMEs in Blora Regency, so that the application of break-even analysis can be an effective strategy in improving the financial performance of MSMEs. In conclusion, understanding and implementing BEP is very important to help MSMEs achieve better profitability and support local economic growth.