Dominant Socio-Economic Indicators on the Growth of Small-Scale Industrial Sector: Empirical Evidence with Principal Component Analysis

This study aims to analyze the dominant factors that
affect the optimal performance of the economic policy
of the small business sector with case study in food,
beverage and tobacco sector development in North
Sumatra, Indonesia. Using Principal Component
Analysis [PCA], the components examined are
investment, wage, inflation, exchange rate, population,
total workers, GDRP, industrial GDRP, interest rate and
total credit. The results of the analysis show that the
variables which are the two dominant factors are
population and credit.