Usaha Mikro Kecil Menengah (UMKM) are business activities that are able to expand employment opportunities, provide economic services widely to the community, play a role in the process of equalizing and increasing community income, encouraging the emergence of creative ideas that can be developed, encouraging economic growth, and playing a role in realizing national stability. The increasingly competitive business conditions and the dynamic and uncertain business environment require companies to seek new breakthroughs and implement strategies that are appropriate and in line with changes in the business environment. Companies must be able to create, exploit, and achieve competitive advantages by creating better company competitive values ??than competitors. Business capital and product innovation have a positive and significant influence on the growth of UMKM in the city of Bandung. Research shows that adequate business capital and sustainable product innovation can improve UMKM performance, such as increasing income and competitiveness in the market.
