This study aims to analyze the model and implementation of tiered SME training in achieving SME's competitive advantage in the industrial revolution 4.0 era. The type of research used was qualitative research through focus group discussion, in-depth interviews, and observation methods. The results of the current study are (1) The Surabaya City Government initiated tiered SME training and developed by academics to facilitate the readiness of SME actors by involving trainers in increasing the competency of SME actors in order to achieve competitive advantage in industrial revolution 4.0 era; (2) Challenges faced by SMEs in the industrial revolution 4.0 era are increasingly severe, so that they require commitment, the ability to adapt to change, and a strong willingness to learn; (3) Commitment, the ability to adapt to change, and the willingness to learn SME actors have heterogeneity.