EFEK DISCOURAGED BORROWERS DAN KEUNGGULAN KOMPETITIF TERHADAP KINERJA USAHA UMKM

There is a phenomenon in which MSME actors often feel reluctant to apply for credit from banking institutions due to various obstacles, such as concerns over application rejection, difficulties in fulfilling administrative requirements, lack of collateral, and high interest rates—this condition is referred to as "discouraged borrowers." The population in this study consists of MSME actors in the manufacturing industry in Central Java Province, and by using purposive sampling, a total sample of 356 was obtained. The results of this study indicate that being categorized as a discouraged borrower has a negative impact on business performance, while competitive advantage has a positive influence on business performance.