ba559a0d-ce36-4adc-893d-db4e06bec43320210208130117798wseamdt@crossref.orgMDT DepositWSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS1109-952610.37394/23207http://wseas.org/wseas/cms.action?id=4016211202021120201710.37394/23207.2020.17http://wseas.org/wseas/cms.action?id=23182The Effect of Innovation on Increasing Business Performance of Smes in IndonesiaErnaHerlinawatiSTIE Indonesia Membangun, INDONESIAAmirMachmudFaculty of Business and Economic Education, Universitas Pendidikan, INDONESIAThe purpose of this study is to analyze the effect of innovation on SME business performance, which is motivated by the important role of SMEs in national economic growth should be accompanied by a significant increase in business performance. But in reality SME competitiveness is still low in the global market due to low innovation. This study uses an explanatory quantitative survey method. 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