Day by day the level of business competition in the MSME sector continues to increase. In preventing the adverse effects of business competition, MSME actors need to have more capabilities, namely in terms of measuring the performance of the MSME being run. Performance measurement has an important role for MSMEs, namely to identify weaknesses that may still occur in the business. Balance scorecard is a business measurement tool that combines financial and non-financial measures. This study aims to determine the effect of the balanced scorecard partially and simultaneously on the performance of SMEs.
The author took the research object in Trenggalek Regency because MSMEs in the type of food and beverage industry in the district had quite rapid growth, causing a high level of competition. The research method in this study uses a type of quantitative research. The data source used in this study is primary data, where data collection uses a questionnaire using multiple linear regression testing and hypothesis testing. Respondents in this study were as many as 58 respondents.
The results of testing the first hypothesis show that the financial perspective variable has a significant effect on the performance of SMEs. The results of testing the second hypothesis indicate that the customer perspective variable has a significant effect on the performance of SMEs. The results of the third hypothesis test show that the internal business process perspective variable has a significant effect on the performance of MSMEs. And the results of testing the fourth hypothesis show that the learning and growth perspective variables have a significant effect on the performance of SMEs. The results of testing the fifth hypothesis show that simultaneously the variables of financial perspective, customer perspective, internal business process perspective, and learning and growth perspective (balance scorecard) have a significant effect on MSME performance.

Keywords: Balanced Scorecard, Performance Measurement, SMEs