This article aims to analyze the moderation effect of risk-taking on promoting business success through innovative performance. The paper focuses on Small to Medium Enterprises (SME) in an emerging economy. The study makes use of structural equation modelling to analyse the relationship between innovative performance and business success, using data from 127 enterprises. While the study confirms a positive correlation between innovation and business success, it also found that risk-taking has a statistically negative and significant moderation effect on this relationship. The research suggests that companies that adopt a risk-averse behaviour can enhance and positively contribute to business success, while companies adopting risk-seeking approach behaviour weaken the relationship. The study offers valuable insights for business leaders and entrepreneurs in emerging economies to adopt tailored risk-taking levels that align with business dynamics to enhance performance.