The existence of competition certainly makes micro, small and medium

enterprises have to prepare capital which will be used as an important role in

correcting the weaknesses that exist in the company. This capital is not only in

the form of the amount of money needed but also the readiness of business

actors in dealing with fluctuating market situations and conditions which is

called expertise capital. With capital, all micro, small and medium enterprises

can carry out production activities and other business activities. Without

capital, micro, small and medium enterprises can still run but can only carry

out very limited activities. Business actors also cannot seize the market

properly if the available capital is minimal. From this statement it can be

concluded that capital readiness will affect production activities and other

business activities so that micro, small and medium enterprises indirectly

cannot seize the market with the goods and services offered. Gradually,

MSMEs will experience a decrease in turnover.

According to the psychology dictionary, readiness (readiness) is a point

of maturity to accept and practice certain behaviors. According to economists,

capital is a company's assets that can be used in further production activities.

Capital is something that is either in the form of money or in other forms that

is used in the business process to achieve and produce the company's goals,

namely to make a profit. From this understanding that the notion of capital

readiness is a point of maturity to be able to receive and

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provide a response in the business process to generate profits to carry out

further production activities.

According to previous research conducted by Resdiana and Gabriel, it

was explained that there was an increase in the competitiveness of DIY SMEs

focused on capital and human resource issues. In addition, based on

observations and interviews, it turns out that MSME actors find a lot about the

lack or lack of capital they have so that business development is constrained or

becomes an obstacle. The main obstacle in developing the business of MSME

actors is the lack of capital.

The lack of existing capital in Sleman Regency raises its own concerns

that what has always been a problem related to increasing competitiveness is

capital. Several MSMEs stated that they preferred to develop their own capital

rather than having to obtain it from a third party. This is because the

requirements and procedures for obtaining capital are quite long and MSMEs

only get a limited amount. Meanwhile, MSMEs can only depend on the sales

of the products they produce to get money back and turn it into further

production activities. When there is a decrease in sales results, MSMEs must

look for other alternatives to run their business so that they need good capital

management to carry out business activities.

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 Currently, online business is growing rapidly in the community. People

unconsciously use it in the process of meeting their needs. Demand in meeting

diverse needs is used by micro, small and medium business actors to provide

online services. Business people are competing to attract consumers without

having to go around looking for and paying for marketing services in marketing

their products. They only need some internet network to connect with some

consumers who need the products we produce. The use of the internet is

believed to increase sales turnover and ease of buying and selling transactions.

Utilizing e-commerce or what is often called the internet makes micro,

small and medium enterprises in Sleman Regency have to work hard.

According to Turban (2012) e-commerce is the process of buying, selling,

sending or exchanging products and services as well as information through

computer networks, most of which are the internet. Business people object to

online business, but gradually the perpetrators must have the courage to take

risks to go directly in cyberspace (online). The courage to use e-commerce or

the internet has not been felt by all MSMEs in Sleman Regency, Yogyakarta.

Most business people still use traditional methods to sell their goods and

of course through minimal marketing. One of the reasons business people do

not market or utilize the system

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buying and selling online, namely they are lazy to pursue consumers who buy

their products in small quantities. Furthermore, business people must always

check payments through an ATM machine. As a result, business people only

take advantage of the information provided by consumers who have purchased

the product before. Meanwhile, its location far from the city center is also an

obstacle to internet access. An unstable network makes business people have

to spend a long time serving consumers. Coupled with knowledge in marketing

products so that they look attractive and have different

characteristics/ethnicities, they are minimal, so additional workers are needed

to take care of consumers who buy online.

In addition, researchers by Aisyah and Daulah mentioned an increase in

competitiveness with network technology or what we often call the internet.

This study states that every small business needs the internet to develop

competitiveness that will be carried out. Of the various problems that occur,

the authors are interested in conducting further studies and research to see the

effect of capital readiness and the use of e-commerce through research entitled:

"The Influence of Capital Readiness and E-commerce Utilization on

Competitiveness