This study examines the influence of entrepreneurial marketing and customer orientation on the competitive advantage of Bank Ekonomi Rakyat (BPR) in East Java, Indonesia, amid a VUCA (Volatility, Uncertainty, Complexity, Ambiguity) environment. Based on the Demand-Based View (DBV) theory, this study examines how customer needs and value creation shape marketing performance and competitive advantage. This study uses a quantitative approach, surveying 193 BPR employees under the supervision of OJK Kediri. The results reveal that entrepreneurial marketing significantly influences competitive advantage through innovation capabilities. Similarly, customer orientation, as indicated by product-service fit, customer preference, satisfaction, and retention, plays a vital role in building a strong competitive position, with product-service alignment emerging as a dominant contributor. Hypothesis testing confirms that entrepreneurial marketing and customer orientation positively and significantly influence competitive advantage. This study underlines the importance of innovation and market response in enhancing customer loyalty, operational efficiency, and service uniqueness. The findings contribute to marketing science by emphasizing the strategic role of entrepreneurial and customer-centric behaviors in micro banking performance. This study offers actionable insights in formulating adaptive strategies that meet the needs of the MSME market and drive sustainable growth through emotional connections and local value integration. This research supports the DBV perspective, reinforcing that organizations aligned with customer demands are more likely to achieve and sustain superior performance in a dynamic market environment.