Micro, small, and medium enterprises (MSMEs) in Bandung face challenges, as evidenced by fluctuating numbers, including limited access to financing, market competition, and regulatory hurdles. The sustainability and success of MSMEs depend on performance. Improving performance requires strengthening entrepreneurial competence, self-efficacy, and entrepreneurial orientation. However, prior studies have yielded inconsistent findings on how these variables relate to business performance. Accordingly, this research seeks to determine how entrepreneurial competency influences business performance, examining self-efficacy and entrepreneurial orientation as mediators. This research employs a quantitative methodology and purposive sampling, a nonprobability sampling technique. This survey involved 100 respondents selected from a total of 1,009 MSME participants in Bandung. The findings of this study indicate that entrepreneurial competence does not directly influence business success, whereas self-efficacy and entrepreneurial attitude do. Self-efficacy and entrepreneurial orientation are interrelated, with entrepreneurial competence functioning as a catalyst that enhances business performance. Furthermore, entrepreneurial competence influences self-efficacy, which, in turn, affects entrepreneurial orientation. This research highlights the significance of self-efficacy mediation and entrepreneurial orientation within the micro, small, and medium enterprise (MSME) framework. The results of the study imply that increasing self-efficacy and entrepreneurial orientation is very important in increasing entrepreneurial competency, which will ultimately improve business performance.