Research on Local Wisdom, Innovation and Talent of Management on SME Competitiveness by using quantitative approach and survey method. The sample of the research is 61 people. Data were collected using questionnaires with Likert scale 1-5. The data analysis technique is Generalized Structured Component Analysis. The results of this study prove that: 1) the Local wisdom has direct and positive impact on competitive advantage of SMEs, 2) innovation has direct and positive impact on the competitive advantage of SMEs, 3) Talent Management has directly and positively impact on competitive advantage of SMEs, 4) Local Wisdom has direct and positive impact on Talent Management, 5) Innovation has direct and positive Affect onTalent Management, 6) Local Wisdom has direct and positive impact on competitive advantage of SMEs through Talent Management mediation, and 7) Innovation has directly to competitive advantage of SMEs through Talent Management.