SUMMARY
The purpose of this study is to empirically testing the role of sustainable entrepreneurial orientation and competitive advantage on business performance of Micro Small Medium Entreprises. This study presents two independent variables (sustainable entrepreneurial orientation and competitive advantage) and one dependent variable (business performance of MSMEs). This research is using quantitative method. Respondents of this research are the owner of MSMEs which is choosen by using non probability sampling method with convenience sampling technique. The number of samples collected in this study are 100 owners of MSMEs. The data is analyze using Structural Equation Modeling with Partial Least Square approach (SEM PLS). The result of this research shows that SEO has no significant effect on business performance of MSMEs. SEO has significant effect on business performance of MSMEs if mediates by competitive advantage which have full mediation role. This research can be use as reference for the owner of MSMEs to maintain good business performance. Using the right strategy alone is not enough to maintain good business performance, but must be supported by offering unique products and services (differentiation products and services) and continue to innovate on products and services so it will create a new value.