This research examines the impact of supply chain flexibility on competitive advantage inside Bangladeshi small and medium-sized companies (SMEs). This study employs a quantitative methodology and analyzes a sample of 250 SMEs to examine many facets of supply chain flexibility, including supplier flexibility, production flexibility, delivery flexibility, inventory flexibility, and market responsiveness. The results demonstrate a substantial correlation between market responsiveness and competitive advantage, underscoring its vital importance in improving SMEs' market standing. In contrast, the research revealed that other aspects of supply chain flexibility did not have a statistically significant effect on competitive advantage. This study enhances the comprehension of supply chain dynamics in emerging economies, specifically for small and medium-sized enterprises (SMEs). The research is constrained by its concentration on a single geographic area and its dependence on self-reported data, potentially introducing biases. Practical implications indicate that SMEs have to emphasize market responsiveness in formulating their supply chain strategy, hence enhancing agility and flexibility to changing market circumstances. The study underscores the need of assisting SMEs in developing adaptable supply chains to improve their competitiveness and foster economic development. The novelty of this research is in its concentrated examination of supply chain flexibility within Bangladeshi SMEs, addressing a deficiency in the literature of supply chain management in developing nations.