The results show that (1) the average value of the current ratio (CR) is 80.64% (2) the average value of the debt to equity ratio (DER) is 1.08% (3) the average value of total assets turnover (TATO) of 88.75% (4) Average value of Return On Asset (ROA) of 10.12% (5) Average value of Sales Growth (SG) of 10.12% (6) Average value Price to Book Value (PBV) of 2.24% (7) Average value of Dividend Payout Ratio (DPR) of 41.50% (8) Current Ratio (CR), Debt to Equity Ratio (DER), Total Asset Turnover (TATO), Return on Assets (ROA), and Sales Growth (SG) together (simultaneously) have an insignificant effect on Price Book Value (PBV) of 85.4% (9) Current Ratio (CR), Debt to Equity Ratio (DER), Total Asset Turnover (TATO), Return on Assets (ROA), and Sales Growth (SG) together (simultaneously) on the Dividend Payout Ratio (DPR) have no significant effect on the Dividend Payout Ratio ( DPR) of 88.8% (10) Current Ratio (CR) with i Intervening Dividend Payout Ratio (DPR) has an indirect effect on Price Book Value (PBV) of 20% (11) Debt to Equity Ratio (DER) of 0.9% and Return on Assets (ROA) with Intervening Dividend Payout Ratio (DPR) ) has a direct effect on the Price Book Value (PBV) of 1%.

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This paper will assess & present empirical evidence on the issue in order to better understand how Microfinance Institutions (MFIs) mediate entrepreneurial talents. The role of MFIs is evaluated based on their functions as a source of finance, facilitators for financial management, managerial management, and marketing management. Sales growth, profit growth, asset growth, employee growth, and market share growth are all ways to gauge a company’s performance. While entrepreneurial ability is assessed using technical, marketing, financial, and interpersonal abilities. The research approach is explanatory, with data collected through questionnaires and interviews. A sample of 150 SMEs sampled the population of 34,816 SMEs in West Java’s Greater Bandung region, Indonesia, using a proportionate random sampling approach. Structural Equation Modeling and a 5-point Likert scale were used to analyze the data collected (SEM). According to the findings, microfinance institutions can help businesses succeed by a small but significant amount. Business performance is positively and significantly impacted by entrepreneurial talents. The MFIS’s significance in influencing entrepreneurial skills expands in relation to corporate performance.