Considering the competitive nature of SMEs environments, developing innovative capabilities is vital for survival. The study assessed the effect of innovative capabilities and entrepreneurial attitude on the performance of SMEs in Ashanti Region of the republic Ghana. The population comprised of SMEs (registered and unregistered) owners with a sample size of 400. A response rate of 98.75% was achieved. Purposive and convenience sampling techniques were adopted and questionnaires used in collecting data. Multiple linear regression was used in establishing the relationship among the variables with the use of Statistical Package for Social Scientist software. The study found innovative capabilities variables of product, process, marketing and organisational innovativeness having positive and significant effect on performance of SMEs. Entrepreneurial attitude also positively and significantly impacts on SMEs performance.
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