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This research has the general aim to examine empirically and to analyze the effect of government regulation on business performance through entrepreneurial orientation and environment adaptability. The specific goals of this research are : (1) to examine empirically the effect of the government regulation on entrepreneur orientation and environmental adaptation; (2) to examine the effect of government regulation on the business progress ; (3) to examine the effect of the government regulation on the business progress by entrepreneur and environmental adaptability. The research takes place in East Java are in Malang municipality, Lumajang county, Pasuruan county, and Trenggalek county amount 394 business units. Collecting data in this study was done by using proportional random sampling technique of 198 business units. The data analysis use she structural Equation Modeling. The result of this research showed that: (1) The government regulation has no effect to improve progress, and only had significant effect through entrepreneurial orientation,. (2) The government regulation has no significant effect to increase business progress, and only had significant effect by environmental adaptation, (3) The government regulation could increase the business progress of the underlined chip business in East Java by entrepreneurial orientation and environmental adaptability.

iosr journal of business and management

Influence Of Government Regulated On Performance Business By Entrepreneur Orientation And Environment Adaptability Small Medium Enterprice Chips Industry