Abstract
This study aims to identify the entrepreneurial orientation and innovation in maintaining the business continuity and competitive advantage, especially in the small and medium enterprises in the Binong Jati Knitting Industry Center Bandung. The research method used is descriptive analytical with qualitative approaches, in order to know entrepreneurial orientation and innovation of entrepreneurs. The research was conducted through surveys and interviews with craftsmen, the owner of the home industry, customers, and other related parties of knitting industry stakeholders. From the results of the study obtained that competitive advantage, which is indicated by the ability to face the threat of new products or substitute products, as well as challenges from suppliers, customers, and competitors' strategies; can be improved through entrepreneurial orientation and innovation. There are three indicators on entrepreneurial orientation, namely creative activity, proactive, and courage to take risks, while innovation consists of three indicators, namely product, process, and system innovation.
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