The Effect of Business Location on Profit

Abstract

This study aims to determine the effect of business location on business profits. A suitable business location is expected to provide a positive impact on the sustainability and profitability of a business. The subjects of this study were clothing store owners operating in Bantan District, with a total of 23 stores; therefore, the researchers applied a total sampling technique. This study used a quantitative field research method. Data collection techniques included observation, questionnaires, and documentation. Based on the results of data analysis, the correlation coefficient indicated a positive relationship between business location and profit, which was categorized as low, with a correlation coefficient value of 0.246 or 24.6%, which was lower than the r-table value of 0.3515 at a 5% significance level. Furthermore, the results of the regression analysis and t-test showed a significance value of 0.257 > 0.05, indicating that H₀ was accepted and Hₐ was rejected. This means that business location does not have a significant effect on the profits of clothing store businesses in Bantan District.