This study aims to examine in depth the influence of entrepreneurial knowledge, skills, and competencies on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Tugu District, Trenggalek Regency. The background of this study is the low level of entrepreneurial literacy among MSMEs, limited access to business information, and weak mastery of the skills and competencies needed to run a business optimally. This poses a serious challenge in improving the sustainability and competitiveness of MSMEs, especially in rural areas. This study uses a quantitative approach with a purposive sampling technique to select relevant respondents. A total of 76 MSMEs participated, selected based on certain criteria such as the length of business and the business field being run. Data collection was carried out through the distribution of questionnaires with a Likert scale of 1 to 10 to measure the variables studied. The collected data were then analyzed using SPSS software, with instrument validity and reliability testing, and linear regression analysis to examine the relationship between variables. The results of the analysis indicate that simultaneously, the three independent variables—entrepreneurial knowledge, skills, and competencies—have a significant influence on MSME performance. Furthermore, each variable partially contributed positively to improving business performance. This study confirms that increasing entrepreneurial capacity, both in terms of theoretical knowledge and practical skills, is crucial for driving the growth and sustainability of MSMEs. Therefore, interventions such as training, mentoring, and improved access to business information are urgently needed to strengthen the MSME sector in rural areas.