Micro and small enterprises currently operate in an environment characterised by high volatility and unpredictability, which forces them to respond quickly to emerging challenges. The concept of dynamic capabilities was developed in response to the question of how enterprises can maintain a sustainable competitive advantage in such unstable conditions. The aim of this monograph is to measure the dynamic capabilities of micro and small enterprises and to identify the relationship between the dynamic capabilities of these enterprises and their performance. The study consists of three chapters, preceded by an introduction and summarised in the conclusion. The first chapter is a literature review devoted to the essence of dynamic capabilities and the determinants of their development. This chapter concludes with a discussion of the role of entrepreneurial orientation in shaping dynamic capabilities. The second chapter discusses the research procedure, sets out the research questions and objectives, and formulates hypotheses. The next part of this chapter contains the operationalisation of theoretical constructs – dynamic capabilities, entrepreneurial orientation, competitiveness and company performance. The last chapter of the monograph presents the results of the research. The first part discusses the measurement models of the analysed variables and presents preliminary analyses of the relationships between the variables describing dynamic capabilities and the characteristics of the companies studied. The chapter concludes with a presentation of the results of the analysis of relationships and statistical inference in the area of conditions for the development of dynamic capabilities. The conclusion contains a set of final conclusions, research limitations and directions for recommended further research on dynamic capabilities.