Previously conducted research works in the field of performance evaluation of SMEs have not solved all the arising problems due to the specific industry issues. Besides, several disputable questions exist, for instance, whether large companies’ performance measurement models can be applied for the needs of small and medium-sized enterprises. It indicates the necessity for continuation of studying the above-mentioned issues in order to find practical solutions. The goal of the research is, studying the performance of SMEs and the factors affecting performance achieving, to propose performance measurement concept encouraging the sustainable development of SMEs and to suggest performance evaluation approach. The object of the study is SMEs from the sub-sector of manufacturing industry in Latvia. To achieve the goal the following research methods were used: quantitative and qualitative methods, including monographic or descriptive method, analysis, synthesis method, and method of sociologic research – survey; statistical research methods, including grouping, comparison, analysis of relative and average indices, correlation analysis. Calculations and data processing were carried out using Microsoft Excel and Eview software. The authors create a model of sustainable performing of SMEs, using results of the empiric research, where external and internal business environment factors influencing effective performance of the enterprise and performance indicators that are to be supervised principally, according to the enterprise life cycle phases, are included. The developed model of enterprise sustainable performing has been tested in the sector of printing in manufacturing industry.