ABSTRACT
This study aims to investigate the effect of entrepreneurial orientation (EO) and business environment (BE) on business performance (BP). This research will explore the important aspects that may improve the BP of Moslem fashion small and medium enterprises (SMEs) in Bandung. Differently from previous studies, EO and BP were studied separately. In this study, we try to comprehend the collaboration between EO and BP. This study is important to be conducted because it may provide insight for these businesses in dealing with intense competition in Moslem industry. Thus, firms need to understand their position and competitive environment. This is a quantitative study which involves 60 SMEs of Moslem fashion industry in Bandung. The data will be processed by using ordinary least square (OLS). The result of this paper shows that there is a positive relationship between EO and BE, and BP; thus, SMEs must begin to improve EO since, based on research, EO factor greatly influences BP.
