Entrepreneurial Orientation (EO) refers to the strategic orientation and mindset of an organization towards innovation, risk-taking, proactiveness, and autonomy. It encompasses the willingness and ability of a firm to identify and exploit entrepreneurial opportunities in order to achieve superior performance. Small and Medium Enterprises (SMEs) that exhibit a high level of entrepreneurial orientation tend to be more innovative, adaptable, and growth-oriented, which can positively impact their performance. The study found that firms that exhibited a higher level of entrepreneurial orientation reported higher sales growth, profitability, and market share. Embracing entrepreneurial qualities and behaviors positively influences the performance of these firms. The study also highlighted the importance of risk-taking in entrepreneurial orientation and performance. Firms that are willing to take calculated risks, such as venturing into new markets or investing in new technologies, achieved higher levels of profitability and growth. In conclusion, the entrepreneurial orientation of small and medium manufacturing firms in Gothenburg, Sweden plays a crucial role in determining their performance outcomes. By embracing innovation, taking calculated risks, being proactive, and providing autonomy, these firms can enhance their competitiveness and adaptability in the dynamic manufacturing industry. This, enables firms to seize opportunities, introduce new products, and expand into new markets, leading to improved financial performance and sustainable growth. Therefore, fostering an entrepreneurial mindset and culture is essential for small and medium manufacturing firms to thrive and succeed in today's business landscape. The study recommended that the government should encourage and support a culture of innovation within manufacturing firms. Provide resources and incentives for research and development activities, encourage collaboration with research institutions, and establish innovation hubs or clusters to facilitate knowledge sharing and networking. Create a supportive ecosystem that encourages entrepreneurship and collaboration among manufacturing firms. Develop policies and regulations that facilitate innovation and business growth, streamline administrative processes, and reduce barriers to entry. Keywords: Entrepreneurial Orientation, Performance, Small and Medium Manufacturing Firms, Sweden