Small and Medium Enterprise (SME) is one of the most types of businesses in Indonesia. The growth of SME’s continues to increase from year to year which also reduces unemployment and poverty in Indonesia. With the development of the internet, this time had made the distance and location do not become an obstacle to do business activities in Social Media. The purpose of this research is to measure the effect of entrepreneurial competence and social media marketing on SME's Competitive Advantage at South Sulawesi Province, Indonesia using Structural Equation Modelling Approach. Population in this research are SME's on South Sulawesi Province, Indonesia. Survey research with purposive sampling was employed with 115 respondents. Data collected using questionnaire and documentation studies and Structural Equation Modelling (SEM) was used to analyze data in this research. The result shows that; (1) Entrepreneurial Competence has a significant and positive effect on SME’s Competitive Advantage, (2) Social Media Marketing has a significant and positive effect on SME's Competitive Advantage, and (3) Entrepreneurial Competence and Social Media Marketing positively and simultaneously affect SME's Competitive Advantage at South Sulawesi Province.