Abstract: This study aims to examine and analyze whether the business strategy is directly influenced by management ability, entrepreneurship orientation both directly and indirectly through businness strategy as mediation. Theoretically, the results of this research is expected to be complete the repertoire of knowledge in strategic management field, especially micro and small entrepreneurship so, it can be useful for academics, practitioners and government. The population in this study is businesman. Respondents used as sample are 74 people seaweed entrepreneurs at micro and small scale method is census and an analytical method used in hypothesis testing is path analysis. The results of this study indicate that: management capability indirectly affects on businessstrategy, entrepreneurship orientation directly influences business strategy. entrepreneurship orientation indirectly affect on business performance business through business strategy.