Abstract:Literally, the concept of community-based enterprises (CBEs) is an originally practiced by community who are living in a small village located in Oyama, Oita, Japan in 1961 through a program One Village One Product (OVOP). Essentially, the model of CBEs which included the factors of cooperation, sustainability and innovation is enhancing the development of business performance among rural communities. In Malaysia, the program of One District One Industry or known as Satu Daerah Satu Industri (SDSI) is virtually practiced the model of CBEs with the purpose is to alleviate poverty among community in rural area. At present, most of rural entrepreneurs are less practiced the factors of cooperation, innovation, and sustainable enterprises as variables in CBEs model in their business activities. Therefore, the purpose of this study is to investigate the impact of CBEs model on business performance among entrepreneurs under SDSI program who are operating their business in East-Coast of Peninsular Malaysia. Hence, the method of this study is based on stratified random sampling which covers 230 respondents who are operating their business in the East-Coast of Peninsular Malaysia. Furthermore, the results indicate that all of the respondents in this study are significantly accepted the factors in a model of CBEs are contributing to their business performance improvement. Then, this research has proved that CBEs model is an essential platform to be implemented in helping the SDSI entrepreneurs as well as improving their business performance.