| dc.description.abstract | Indonesia, with a population of 273.5 million, faces the challenge of unemployment, which reached 9.77 million in 2020, contributing to poverty and crime rates. Entrepreneurship, Particularly MSMEs managed by women, serves as a potential solution for creating jobs and boosting economic growth. In Deli Serdang Regency, female entrepreneurs dominate the MSME sector, accounting for 1,470 out of 2,540 units in 2024. Despite their role in reducing unemployment, the decline in economic growth rates indicates that the performance of MSMEs led by female entrepreneurs in Deli Serdang Regency has not yet reached its full potential. This study highlights the importance of developing entrepreneurial skills to accelerate economic growth and reduce poverty. The aim of this research is to analyze the influence of social capital and innovation capability on MSME performance through competitive advantage. This study focuses on female entrepreneurs in Deli Serdang Regency, with a sample of 155 respondents. Data were analyzed using descriptive analysis and path analysis with the Smart PLS application. The results show that social capital has a direct positive and significant effect on MSME performance, innovation capability positively and significantly influences MSME performance, and competitive advantage positively and significantly affects MSME performance. Furthermore, social capital positively and significantly influences competitive advantage, and innovation capability also positively and significantly affects competitive advantage. Indirectly, social capital positively and significantly influences MSME performance through competitive advantage, and innovation capability positively and significantly affects MSME performance through competitive advantage. | en_US |
