Micro, Small, and Medium Enterprises (MSMEs) play a vital role in economic development but often face challenges in competitiveness and sustainability. This study examines the influence of entrepreneurial orientation, entrepreneurial ecosystems, and mentoring on MSME performance, with innovation as a mediating variable. A quantitative survey was conducted among MSME actors in Palu City using purposive sampling, and data were analyzed through Structural Equation Modeling (SEM-PLS). The findings reveal that entrepreneurial orientation positively drives performance, ecosystems provide resource and network support, and mentoring enhances managerial capacity. Innovation serves as a crucial mediator that links entrepreneurial determinants to improved business outcomes. These results highlight the importance of strengthening innovation, supportive ecosystems, and mentoring programs to ensure sustainable MSME competitiveness...