Abstract: In Magetan medium development planning 2009-2014, processing industry becomes one of the priority program in Magetan. The leather tanning industry is one of it, which shows decreasing in productivity over the last three years. This study aims to identify the factors that affect entrepreneur profit in the leather tanning Magetan using multiple linear regression model OLS. The study shows that entrepreneur education, business, location, age business, venture capital, the number of machines (stol, togling, roll coating, fleshing, and vacuum), origin of raw materials from local Magetan and East Java, production, selling price, sales to the market in East Java and promotion has positive significant effects.

Keywords: Small Industry, Profit, Tannery