knowledge resources, and other technologies so that these

resources will become some of the binders for MSMEs.

d) Capital Resources

Capital resources are needed in various conditions. The

capital resources referred to include the amount and costs

available, the type of financing (source of capital), the conditions

of financing institutions and banking, monetary and fiscal

conditions and financial regulations.

e) Infrastructure Resources

This source includes the availability of the type, quality and

cost of using infrastructure that will affect competition including

communications, transportation systems. Payment and transfer

of funds.

2) Request Condition Dimensions

Domestic conditions are a determining factor for industrial

competitiveness, especially in terms of the quality of domestic

demand. Meanwhile, the quality of domestic demand is a learning

tool for domestic companies to compete in both global and

international markets. A quality of domestic demand provides a

challenge for every company, especially MSMEs, to compete in

response to the quality of domestic market competition which is

increasingly widespread among MSME businesses.

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 There are several factors of demand conditions that affect the

competitiveness of the national industry. One of them is mentioned

below:

a) The composition of domestic demand

(1) Anticipating the needs of both buyers from domestic

companies is a point in gaining competitive advantage.

(2) Experience and high appetite for buyers will increase

pressure on manufacturers to produce higher quality

products that meet higher standards.

(3) The structure of demand segments is a determining factor for

national industrial competitiveness.

b) The number of requests and growth patterns

The number of requests and growth patterns are carried out

if the industry is carried out on an economic scale through

investment by building large-scale facilities, developing

technology and increasing productivity to increase the

competitiveness of a company and the MSME scale.

The strength of the competitiveness of a nation/state/economy is

determined by the strength of its foundation. The stronger the

foundation, the better the UMKM can compete with other UMKM, and

lastly

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 determined by a number of pillars, each of which has its own

competitiveness, namely:

1) Natural/physical pillars

2) Company pillar

3) The innovator/inventor pillar

4) Government pillar

5) Community pillar

In this study, competitiveness has three characteristics, namely

potential, process, and performance. In addition to these three

characteristics, competitiveness is also characterized by long-term

orientation, controllability, relativity and dynamics.

d. Determinants of Competitiveness

According to Tambunan (2011) states that the determinants of the

competitiveness of companies are determined by several factors,

including the following.

1) Skills or educational level of workers

The expertise or level of education of workers is the most

dominant thing in a business. This is believed by the existence of a

person's ability to do something that is specific, focused but

dynamic (expertise). This expertise is also triggered by the level of

education of workers. The higher the level of education, the greater

the skill of the worker in applying the knowledge gained.

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2) Entrepreneur skills

Entrepreneurs' expertise is also considered in business.

Entrepreneurs must have more expertise with their work, including

having a big vision, ambition to achieve something, courage in

various matters and competencies that are supported by the level of

education and experience. That way the expertise of entrepreneurs

becomes a calculation in increasing the competitiveness of

MSMEs.

3) Availability of capital

The availability of this capital is how much funds a company

needs to run operations so that it can support the products it

produces.

4) Organization and management system

The organizational system is the foundation that makes a

success in business so that something that can harm the business

can be minimized. Not only that, when an organizational system is

considered good but cannot be managed perfectly, it makes a

business falter.

5) Technology availability

Availability of technology is how a business can take

advantage of technology that is developing in

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