MSMEs (Micro, Small, and Medium Enterprises) have a strategic role in national income. The facts show that MSMEs are proven to be able to survive during the monetary and economic crisis. MSMEs also play a major role in absorbing labor and being able to distribute development results. This study aims to analyze the factors that influence the development of MSMEs on national income. The data used are quantitative secondary data in the form of time series (years) and cross section data (business

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... oups) and the method used is panel data regression. Panel data regression is a combination of Cross Section data and Time Series data, where the same Cross Section unit is measured at different times. The response variable is National Income (GRDP) and the predictor variables are Number of Workers (TKERJA), Number of MSMEs (JUSAHA), INVESTMENT, and EXPORT. Data obtained from BPS, Kemenkop and UMKM, as well as BI. The results showed that the best model is the Fixed Effect model, the variables that have a significant effect on national income (GRDP) are INVESTMENT and EXPORT. Based on the R-Squared value, the R2 result is 80.34%, meaning that 80.34% of the National Income (GDP) is influenced by the variables JUSAHA, INVESTMENT, EXPORT, and WORKERS, the remaining 19.66% is influenced by other factors.