This entry provides a review of literature related to the associations between performance of small and medium-sized manufacturing enterprises (SMEs) and (a) the interplay among various forms of innovation (service, process, and product) and (b) external collaborations with customers and suppliers. Recent literature shows that the association between innovation and firm performance is different by innovation type. Additionally, collaboration with suppliers or customers correlates positively with turnover growth (sales). We also describe the UK Small Business Survey that survey studies have used to examine SMEs’ performance activities and demonstrate how it could be used to evaluate theorized associations.