Human Resources (HR) are a crucial asset for companies and must be effectively managed and developed to maximize performance and achieve the company’s objectives. In this study, the focus is on Small and Medium Enterprises (SMEs), which undeniably play a vital role as the backbone of the national economy. This research aims to analyze the impact of empowerment, entrepreneurship, and self-efficacy on employee productivity in SMEs, specifically in Batik Tulis SMEs in Malang Raya. Additionally, the study seeks to identify the most dominant factor among these three variables in influencing employee productivity. The research employs multiple linear regression analysis, with data collected through questionnaires from 102 respondents selected using a census method. The findings indicate that empowerment, entrepreneurship, and self-efficacy have significant simultaneous and partial effects on employee productivity. However, self-efficacy was found to be the most dominant factor affecting employee productivity, contrary to the initial hypothesis that identified empowerment as the dominant variable. The novelty of this study lies in its discovery that self-efficacy has a significant influence on employee productivity.