Abstract
The purpose of this research is to provide practical and theoretical insights about how small and medium enterprises (SMEs) adapt and further develop entrepreneurial activities, product innovation and SME business performance This study used a quantitative method using a questionnaire for data collection. The research data developed by distributed online questionnaires by social media. The number of samples used was 230 respondents using a purposive sampling technique. Partial Least Square (PLS) is used for data processing by SartPLS 4.0. Based on the results of data analysis it is concluded that entrepreneurial competence has a significant effect on business performance and entrepreneurial competence has a significant effect on product innovation. Product innovation has also a significant effect on the performance of SME businesses.
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