This study investigates the effects of Entrepreneurial Orientation (EO) on the performance of Micro and Small Enterprises (MSEs) in Ebinat Town, Ethiopia. Specifically, it examines five dimensions of EO risk taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy and their influence on business performance indicators such as profitability, growth, and customer satisfaction. The general objective of the study was to assess how EO affects MSE performance within the local context of Ebinat. The study employed a quantitative research approach using a descriptive and explanatory design. Data were collected through structured questionnaires from 366 MSE owners and managers, selected via stratified random sampling across various business sectors. Statistical analysis, including multiple linear regression using SPSS version 25, was applied to test the hypothesized relationships between EO dimensions and MSE performance. The results revealed that all five EO dimensions have a statistically significant and positive effect on MSE performance. Among them, risk-taking (β = 0.423), proactiveness (β = 0.293), and innovativeness (β = 0.251) demonstrated the high effects, while competitive aggressiveness (β = 0.062) and autonomy (β = 0.157) also showed positive contributions. Based on these findings, it is recommended that MSE owners actively foster all five EO dimensions to enhance their business performance. Local government should Provide Training and Mentorship, Facilitate Access to Finance, create Networking Platforms and Improve Infrastructure. Future research should explore EO performance relationships across regions, apply mixed approach to capture cultural influences, examine moderating factors like finance and policy, and conduct longitudinal studies to track EO's long term effects on MSEs performance.