This research stress the competence development belong to the entrepreneur both from the internal factor (entrepreneur social capital) and external one which can be seen from the relational competence development, it becomes one new variable that is, entrepreneurial social competence. Entrepreneurial social competence is a determinant variable to improve competitive advantage and SME s business performance. Entrepreneurial social competence is the capability of entrepreneurs to express themselves in building social relationship via relational competence development and familiarism spirit based on social interaction.