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MSME is a significant determinant of economic growth, has an enormous contribution to national GDP, and help in creating jobs, and also played a critical role in a time of economic crisis. MSMEs is demanded to be able to compete in marketing their business. The writing of this article tries to explain how to measure performance in MSMEs with the size and assessment of existing performance. This study uses a literature research approach with secondary data collected through books, research reports, scientific journals, official agency documentation such as the Indonesian Central Statistics Agency. The empowerment of MSMEs becomes very strategic because of its high potential in driving the economic activities, and at the same time, becoming the source of income for most people in improving their welfare. The creation and development of local business that create jobs and potential economic opportunities are essential for the rural economy. The region can gain competitiveness and, in turn, can increase the local income and employment. The benefits of performance appraisal can be felt by the owner with a measure of business success that can be seen from the increased level of sales, increased capital, increasing the number of workers, increased levels of income and profits, and sales or a wider market. The evaluation of MSME's performance is carried out on the internal and external parties of MSMEs. Thus, the MSME's performance will be known from inside and outside MSME in order to achieve a successful business and be able to compete in national and international markets.