Well here is my reasoning.

Limping must be bad. I'd prefer to push 73o when its folded to me next hand than limp here for 1/6 of my stack. Also, if we get raised what happens then? Do we just fold and leave that 200 on the table? Or call despite the fact we mst be behind?

Pushing to me is reasonable. I think we have about a 30% chance of getting it folded around and pick up a very nice boost to our stack. However, if we get called we're praying for a coinflip.

That leaves folding. I prefer this option for a few reasons.

1) QJs isn't really that good at all. What exactly are we beating if we push?

2) Our folding equity against UTG isn't so good. Players at low buyins tend to like to make overly loose calls when they already have money invested in the pot.

3) Our chip position is bad indeed, but we're not done for yet. We can afford to wait for a better hand than this, or at least push when we're first into the pot.

However, my friend hates folding and loves limping, which is just bizarre to me. With such a small stack, we're playing push/fold poker. Limping isn't pushing or folding.