| Summary: | This research analyzes the influence of (1) entrepreneurial self-efficacy (X1) on business performance (Y1); (2) entrepreneurial self-efficacy (X1) on innovation (Z1); (3) innovation (Z1) on business performance (Y1); (4) entrepreneurial self-efficacy (X1) on competitive advantage (Z2); and (5) competitive advantage (Z2) on performance (Y1). This study adopts an explanatory research design with a quantitative approach, and it uses four variables: entrepreneurial self-efficacy (X), innovation (Z1), competitive advantage (Z2), and business performance (Y). Samples consist of 104 individuals. The results of the study indicate that (1) entrepreneurial self-efficacy does not have a significant influence on business performance; (2) entrepreneurial self-efficacy has a significant influence on innovation; (3) innovation has a significant influence on business performance; (4) entrepreneurial self-efficacy does not have a significant influence on competitive advantage, competitive advantage does not have a significant influence on business performance; (5) entrepreneurial self-efficacy significantly influences business performance when mediated by innovation; and (6) entrepreneurial self-efficacy does not have a significant impact on business performance when mediated by competitive advantage.
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