INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 03, MARCH 2020 ISSN 2277-8616 6627 IJSTR©2020 www.ijstr.org Social Capital: The Main Determinant Of Msme Entrepreneurship Competitiveness P. Eko Prasetyo, Andryan Setyadharma, Nurjannah Rahayu Kistanti Abstract: Gaps in economic power have resulted in increasingly prominent inequality, thus requiring quality economic growth and good business competitiveness. The purpose of this study is to explain the important role of human capital and social capital as entrepreneurial capital competencies in promoting economic growth and business competitiveness. Coss-sectional data are used as the main material. Quantitative and qualitative material was collected from 125 representative samples of entrepreneurial households. The analysis model uses single and multiple recursive path analysis. The results of a single track model study show; a positive and significant increase in business competitiveness is influenced by factors; economic institutions, employment opportunities, economic growth, human capital and social capital. Meanwhile, social networking factors have a negative and significant effect on business competitiveness. In the dual track model, the contribution of human resource competencies is the main driver of quality economic growth, and the contribution of social capital competencies is a major determinant in enhancing entrepreneurial competitiveness. The recommended policy implications for reducing inequality and inequality require policies to improve the quality of economic growth and business competitiveness through enhancing human resource competencies and entrepreneurial social capital competencies as key drivers and determinants. Keywords: Human capital, social capital, institutional, competitiveness and economic growth ——————————  —————————— 1. INTRODUCTION The quality of economic growth and increased competitiveness of competitiveness are increasingly needed. The quality of economic growth is a guarantee of alternative stability in entering a favorable international competitive position through economic diversification. The country's economic growth is related to energy consumption, both in terms of human resources and capital (Bilan, 2019b). Social, financial, and human capital are important factors that influence entrepreneurial success (Alvareza, 2001). Social capital is a modern concept that is introduced economically and socially in studying modern society (Iravani, 2010). In the modern economy there is a significant relationship between human capital and quality economic growth and competitiveness (Prasetyo, 2008, 2016, 2019a; Ali, 2018). In the concept of sustainable economic development social capital will strengthen human capital in promoting quality economic growth and competitiveness. The quality of economic growth and increasing competitiveness are increasingly needed. The quality of economic growth is a guarantee of alternative stability in entering a favorable international competitive position through economic diversification. The country's economic growth is related to energy consumption, both in terms of human resources and capital (Bilan, 2019b). Social, financial, and human capital are important factors that influence entrepreneurial success (Alvareza, 2001). Social capital is a modern concept that is introduced economically and socially in studying modern society (Iravani, 2010). In a modern economy there is a significant relationship between human capital and quality economic growth and competitiveness (Prasetyo, 2008, 2016, 2019a; Ali, 2018). In the concept of sustainable economic development, social capital will strengthen human resources in increasing economic growth and competitiveness. The results of Doh's (2011) empirical research, simultaneously controlling for theorized factors to influence entrepreneurship at the individual and state level shows that there is a positive relationship between social capital and entrepreneurship. The main problem is that the huge disparity in human capital and economic strength has resulted in increasingly prominent inequality, so that human capital competence and entrepreneurial capital social competence are needed as a solution to improve the quality of life of the poor to improve their welfare. The point is that entrepreneurial capital competence is an important factor in achieving the competence and performance advantages of Micro, Small and Medium Enterprises (MSMEs). The argument is; Without the strength of social capital and social wealth, the results of development that has been painstakingly constructed and has used up a lot of resources will be quickly destroyed again. That is, social capital competence or ability to interact socially can be an important solution in building social relations through the spirit of entrepreneurship based on the principle of uniqueness of social interaction "tuna satak bathi sanak" (Prasetyo, 2019a, 2019b). Social capital has played an important role in gaining access to entrepreneurship to have high social competence (Melissa, 2018). Entrepreneurial social competence is considered important and as a key to better business development and success (Meutia, 2013; Badriyah, 2015). Entrepreneurial social capital competence is considered as an important key, because it can contribute to the strengthening of the theory of Resurrection-based Viev (RBV) which states that there are assets not manifested from entrepreneurial social competence in building MSME business networks and MSME business performance. Meanwhile, the theoretical concept of causal relationship between social capital and social entrepreneurship still requires empirical verification (Madhooshi, 2015). He emphasized it in a fair and reasonable conclusion that there must be a two-way relationship and the reciprocal impact between social capital and social entrepreneurship. Thus, this argument further reinforces the _____________________________________ • P. Eko Prasetyo Faculty of Economics, Universitas Negeri Semarang, Indonesia. e-mail: pekoprasetyo@mail.unnes.ac.id https://orcid.org/0000-0001-7824-0352 • Andryan Setyadharma Faculty of Economics, Universitas Negeri Semarang, Indonesia. e-mail: andryan_sds@yahoo.com. • Nurjannah Rahayu Kistanti, Faculty of Economics, Universitas Negeri Semarang, Indonesia. e-mail: nurjannah.rk@mail.unnes.ac.id