This study aims to offer a model that shows the influence of direct and indirect relationships of sustainable growth and factors that influence it such as Service Quality, Product Innovation, External Factors and Competitive Advantage as mediation. This research model was analyzed by Structural equation modeling by Partial Least Square. The data was collected by distributing surveys to 230 MSME business actors in Tangerang and Banten. The data collection technique uses simple random sampling. Of the ten hypotheses proposed, it is proven that there are five hypotheses proven to have a significant relationship directly between variables, and one hypothesis does not have a significant relationship. Two variables prove an indirect relationship between service quality variables, and external factors for sustainable growth with competitive advantage as mediation. One variable was not shown to have a direct relationship with competitive advantage as mediation. The research model tested only shows the influence of variables that support sustainable growth, with three variables consisting of service quality, Product Innovation, and external factors, with competitive advantage variables as mediating variables. Further research is expected to develop this model with other variables such as Digital Marketing   and Organizational performance in MSMEs in Tangerang and Banten regions. This research proves that SMEs can use the results of this research to identify opportunities and threats that may arise from external factors such as regulatory changes, shifts in market trends, and technological developments. This includes developing appropriate adaptation strategies, developing partnerships or networks with external stakeholders, and monitoring environmental changes that may affect SME operations and sustainability. This research model offers external variable factors as one of the factors that are rarely discussed in sustainable growth in the field of MSMEs, especially with competitive advantage being a mediating variable.