<![CDATA[AnstractSmall and Medium Enterprises ( SMEs ) is one important part of the Indonesian economy . The growth of SMEs experiencing increasing from 2001 until 2007 . However , in Central Java BPS data, 2012 has showed a decrease in the amount of SMEs from 2007 until 2011. The conditions indicate the existence of problems that effect to the  business performance. Several factors related with the performance of SMEs is entrepreneurship orientation and internal resources. This research has analyzed the effect entrepreneurship orientation and internal resources to competitive advantage and performance of SMEs furniture in Jepara. The results of data analyze showed that entrepreneurship orientation has a positive and significant effect on competitive advantage and has a positive and significant effect on performance . Internal resources has a positive and significant effect on competitive advantage and has a positive and significant effect on performance . Entrepreneurship orientation and internal resources have positively and significantly effect performance either directly or indirectly.through.competitive.advantage. Based on of these results , managerial implications that can be recommended is an increase in performance can be achieved with a more proactive and innovative to create a quality product and market preferred . The businessmen should expand the entrepreneurial ability to dig up more information through various media . Increasing the skills of employees can be done through training . This effort done so that the furniture company able to compete in the global market place .  ]]>
