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In an environment of business uncertainty that has characterized the 21st century, enterprises, mainly small and medium-sized ones (SMEs), have to redirect or adequate their business strategies in order to adapt as fast as possible to the changes demanded by the market. Therefore, SMEs have to be more proactive nowadays, take higher risks and be more innovative in order to survive as well as to improve significantly their innovation capabilities in products, services and management systems. In simple terms, SMEs have to adopt and implement the entrepreneurial orientation as part of their everyday activities so they have more possibilities to increase their innovation level. Thus, the main objective of this research is to analyze the existing relation between proactivity, risk taking and innovativeness (dimensions of the entrepreneurial orientation) with the innovation capabilities (innovation in products, services and management systems). The results obtained show that there is a positive and significant relation among the three dimensions of entrepreneurial orientation and innovation capabilities.

Entrepreneurial Orientation and Innovation Capabilities in Mexican Small Business