This research was motivated by a desire to identify enhancements to the current state of small and medium enterprises (SMEs) in Bahrain. Specifically, the study examined how three dimensions of entrepreneurial orientation (EO)—proactiveness, risk-taking, and innovativeness—affect the sustainable performance of SMEs. A survey was administered to a randomly selected sample of SMEs across various provinces in Bahrain, yielding 329 valid responses. Data were analyzed using the Statistical Package for the Social Sciences (SPSS, version 26.0), including reliability testing, factor analysis, correlation analysis, and multiple regression. The findings revealed that proactiveness and innovativeness significantly and positively influence the sustainable performance of SMEs, while risk-taking demonstrated a significant negative relationship. These results suggest that, in the context of Bahraini SMEs, sustainable performance is best supported through innovation and proactive market engagement, whereas excessive or unmoderated risk-taking may hinder long-term sustainability. The study contributes to the entrepreneurial orientation literature by highlighting the distinct roles of EO dimensions in shaping sustainable performance outcomes. This research provides practical implications for business owners, policymakers, and scholars by emphasizing the need to prioritize innovation and proactiveness in strategic planning, and to adopt a more cautious approach to risk management in SME development initiatives.