Innovation Accelerates Competitiveness and Business Development (SME Entrepreneurs South Tangerang City) Sonny Indrajaya 1 , Asep Ferry Bastian 2 Management Program Study, Mercu Buana University, Jakarta, Indonesia 1 , Management Program Study, Syekh-Yusuf Islam University, Tangerang, Indonesia 2 sonny.indrajaya@mercubuana.ac.id 1 , a.ferry.bastian@unis.ac.id 2 Abstract. Small and Medium Entrepreneurs in South Tangerang City who are still relatively new to start up businesses will continue to look for information about market opportunities and product development, but are not yet too developed and still in need of digital technology that will create innovations for products that will be liked by buyers. Innovation will certainly also provide small and medium entrepreneurs to be able to compete and develop their business. This research uses quantitative methods and will analyze 365 respondents who have filled out the questionnaire. This analysis uses WRAP PLS (Partial Least Square). The results obtained for the relationship between the 3 variables have a positive and significant effect. JEL classification: M2, M3, M21, M31 Keywords : Innovation; Business competition; Business Development 1 Introduction The digital era as a term used in the emergence of digital technology, internet networks, especially information technology. The business sector in the digital era is experiencing a very fundamental change in business processes due to the emergence of information technology. The process business is a collection of activities that produce something and every process will be triggered by an event (Magal and Word 2012). The business process is a collection of activities to be able to produce products and services that have useful value for related companies that is needed to achieve a final value that is valuable to the company (Kelly R. Rainer 2011). This was also stated who revealed that information technology has inspired reengineering of various traditional business processes. Oxford English Dictionary (OED) explains the notion of a n information technology consists of hardware and software which includes networks and telecommunications, this is used in business relationships (Hall and Singleton 2009). ITTA stands for Information Technology Association of America which provides an understanding of information technology: a study, design and implementation, development and support for information system management with a computer-based focus on hardware and software applications for computers. There are three pressures or factors that cause business change, namely customers, competition, and change. The first pressure comes from customers, where customers now like the easy access to information on goods and services they want. This is in line with changes in customer behavior that is increasingly close to information technology. The second pressure comes from competition between companies. Increasingly sharp business competition makes companies have to do new and innovative things in the face of changes in information technology. The third pressure comes from change (Hammer and Champy 1993). Revealed that INCEESS 2020, July 17-18, Bekasi, Indonesia Copyright © 2021 EAI DOI 10.4108/eai.17-7-2020.2303037