This study ainu to investigate empirical evidences of the relaticnship between entrepreneurial orientation to enhance business performence. The previous study found th*t entrepreneurial orientation beeame an important key fcrr afl €rilepr€neurial ta enhancE the business perfh,rmance. This study also examinEd the role of relarional capabilities as an intervening variable to achieve business perfbrmance. The saruple in this study wore ths furnitr:re Small and micro entrepreneirs (SMEs) in the regian of central Java with a sampie size of 200 respondents. The sampling techrique in this research was d*ne by using purposive sampling. Struetural Equation Modelling {SEM) was used to test resulte of the data amlysis with the help of sof[ware A]\{OS l Amcs Graph. The results of the srudy showed that enkeprenewial orientatir:n has * signitieant pnsitive effs$t on business perfbrmance. Entrepreneurial arientation has a significant pr:sitive etTcet on relational eapabilities. Relatianal eapabilities is mediated signifieantly the positiv* r*lationship of enh'epreneuri al orientati on and busi ness perf-or-mance