This study aims to determine the effect of entrepreneurial orientation and market orientation on business performance through competitive advantage at the center of bag craftsmen. This research is a quantitative study using accidental sampling with primary data by distributing questionnaires to the center for bag craftsmen in Tanggulangin, Sidoarjo. The samples in this study used 110. The data analysis method uses PLS. The result showed that entrepreneurial orientation had a significant positive effect on competitive advantage, market orientation has positif not significant on competitive advantage, entrepreneurial orientation has a significant positive effect on business performance, market orientation has a significant positive effect on business performance, competitive advantage has a positive effect on business performance.