Small retail business is more sustainable compared with the large business. In Makassar, South Sulawesi, Indonesia, there are some retail businesses, and they need to be more competitive to survive. Te study intended to analyze the influence of service orientation, entrepreneurial, market, location and product selection on the performance of small retail businesses and their influence on the performance of small retail businesses on competitive advantage. This is a descriptive study. The researcher collected data by interview and questionnaire using a sample of 120 respondents. Using SEM analysis, data were treated through the AMOS program. Te results showed that the service orientation, market orientation, location and selection of products had a significant positive effect on the performance of small retail businesses. Besides that, this study showed that the performance of small retail businesses significantly and positively affected the retail businesses’ competitive advantage.