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This study aimed to explore the innovation strategy and the link between human capital, social capital, and financial capital as a factor that determines the success of small & medium businesses. The approach is through the study of literature. The results show 1) human capital as in the dimensions of education, skills, experience, entrepreneurship determines the success of SMEs, especially in increasing product quantity and quality, sales and market share, capital and profit, customer satisfaction and competitiveness of SMEs. 2) Social Capital as in the dimensions of kinship, association, institutional, and professional networks determine the success of SMEs, especially in increasing product quantity and quality, sales and market share, capital and profit, customer satisfaction and competitiveness of SMEs. 3) Financial capital: as in the dimensions of access to financial institutions, sources of funding, investment and financial management determine innovation strategies such as the dimensions of the discovery and improvement of production methods / technologies, the creation of new products, product development and improvement, new market discoveries and market expansion. 4) Innovation strategies such as the dimensions of the discovery and improvement of production methods & technologies, the creation of new products, product development and improvement, the discovery of new markets and market expansion determine the success of SMEs, especially in increasing product quantity and quality, sales and market share, capital and profit, customers satisfaction and competitiveness of SMEs

Innovation Strategy for Creating Successful Small and Medium Businesses