<p>The increase in the number of MSMEs, especially in the number of digital businesses, has also occurred in Bandung City especially since the Covid-19 pandemic occurred in the first quarter of 2020 which had a positive impact on the economic growth in the city of Bandung. According to the Minister of Finance, the food and beverage business is the sub-industry that has the greatest economic impact on the GDP of the creative economy contributing 43% to the total income generated by the tourism and creative economy sectors. One of the culinary businesses that is growing, especially during this pandemic, is the bakery business. In 2019 the Ministry of Agriculture released a new report showing that consumption of bakery products increased by 500% from 2014 to 2018. In fact, this development did not stop when the Covid-19 pandemic hit. The Covid-19 pandemic has also changed trends and habits among people in Indonesia, which has made the growth of the bakery business increase. However, the bakery sector in the city of Bandung is experiencing several challenges, including tight competition, especially with the old, legendary bakeries in the city of Bandung. Then there is insufficient human resource training, no innovation, obstacles to promotion, limited raw materials, and difficulty getting adequate connections and distribution. This research aims to determine the relationship between entrepreneurial orientation and business performance which is assisted by digital literacy directly or indirectly. This research is quantitative research with a causal approach. The sampling technique used is non-probability sampling with a purposive sampling approach. The sample used was 97 bakery businesses on a micro and small scale in the city of Bandung. SmartPls was used in this research to process data from respondents which had been collected using a questionnaire.</p><p>The results of this research show that the entrepreneurial orientation variable has a positive effect on business performance, the digital literacy variable has a positive effect on business performance, and the digital literacy variable mediates the relationship between entrepreneurial orientation and business performance.</p>