The purpose of this study was to determine and analyze the effect of business strategy on the performance of MSMEs in Malang City. This research is a quantitative study with variables of business strategy and MSME performance. The research data were collected by interview, documentation, observation, and distributing questionnaires to 30 business scale respondents using a cluster random sampling technique. Data analysis used is multiple linear regression analysis and hypothesis testing. The results prove that business strategy has a positive influence on the performance of MSMEs in Malang City. This shows that business strategy can be used as a basis for consideration in improving the performance of MSMEs in Malang City. This is because the business strategy carried out can improve the performance of MSMEs.
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