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The fact shows that Micro, Small and Medium Enterprises (MSMEs) play a very important role in economic growth, even MSMEs are the only micro institutions that have not been swayed by the monetary crisis that began in 1988 and until now. However, as one of the mainstay sectors of society, especially the middle to lower class economic community, the role of MSMEs is not yet maximal, so that they are not fully able to compete, even worse, many MSMEs are out of business or inactive. Many factors cause the inability of MSMEs to compete, among others, due to low innovation and competitiveness so that they are not able to win competition both in the national and international realms. The decrease in the number of MSMEs from active to inactive, because these MSMEs are less able to survive in the arena of increasingly fierce competition, so that the only MSMEs that survive are those that have creations and innovations in accordance with the needs of the community. MSMEs have a personality that is less trusting than their low managerial abilities. If the MSME actors have Internal Locus of Control and high managerial abilities, then the UMKM players will be more creative and innovative.

The Analysis of Locus of Control and Managerial Skills on the Competitiveness of Micro, Small and Medium Enterprises (MSMEs) in Pangkalpinang City