This research was conducted with the aim of knowing the effect of Entrepreneurial Orientation and Innovation on Firm Performance in chip businesses in Batu City. This type of research uses an explanatory type with a quantitative approach. The sampling technique used used the saturated sampling method to 71 respondents from the entire population of chip businesses in Batu City. Data processing was carried out using IBM SPSS software version 25.0. The results of this study conducted involving several series of tests show the results that Entrepreneurial Orientation has a positive and significant effect on Business Performance. Entrepreneurial orientation is able to improve business performance by being responsive to existing opportunities. The role of innovation also has a positive and significant effect on business performance. Innovation is able to improve business performance by making changes to production raw materials.
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