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This study was done to see the effect of extern and intern environment toward business strategies and the performance of micro, small and medium enterprises. The population of this study was business owners in Bajawa Regency, Nusa Tenggara Timur Province, Indonesia, represented by 122 respondents as the samples of this study. The samples were chosen using a proportionate stratified random sampling. The data of this study were then analyzed using Partial Least Square technique. The result of this study shows that extern and intern environment have significant effects toward business strategies and performance as mediators.

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