Leaders in market can be only those who timely implement innovations in various aspects of their businesses instead of just caring for the analysis and functioning of financial, production, marketing and client service processes. The goal of the research is to identify factors influencing the efficacy and development of small enterprises, to analyse them, to create the model of innovative development of small enterprises and to test its validity and reliability by using it in practice. The hypothesis of the present research was stated as follows: the base of the model of innovative development of small enterprises is the intellectual capital; its bigger value makes financial performance of the enterprise better. The methods used for conducting the research were: literature exploring, analysis, comparison, modelling, statistic methods, method of expert evaluation and graphical presentation