The main objective of every policy of a developing country, including Indonesia, is
to eliminate the main problems that are still fundamental, namely: the problem of
poverty and unemployment. The alleviation of poverty and unemployment by
developing MSMEs has good potential, because the MSME sector has a major
contribution to employment, i.e. absorbing a large number of workers, namely 97%.
Efforts to advance and develop the MSME sector will be able to absorb more of the
existing workforce and of course will be able to improve the welfare of the workers
involved in it so as to reduce unemployment and ultimately can be used for poverty
alleviation. This study aims to determine how big the role of MSMEs in alleviating
poverty and unemployment in Sibolga City. This research was conducted using
quantitative methods with descriptive research type. The population in this study
were all MSME actors in Sibolga City and the sampling technique used stratified
random sampling and the number of samples from this study was determined by the
Krejcie & Morgan table, where the sample amounted to 191. The analysis technique
used was path analysis. ), significance test (t test and F test), and determination test.
The results showed that the impact of MSMEs had a significant effect on
unemployment, the impact of MSMEs had a significant effect on poverty,
unemployment had a significant effect on poverty and the impact of MSMEs had a
significant effect on poverty alleviation through unemployment in Sibolga City.
Keywords: Impact of MSMEs, Poverty Alleviation, Unemployment