This paper analyses current situation in strategic decision making process for SME’s of Latvia in the context of European Union and prescribes further development. Author gives analyses of strategies described in theory and offers four steps in strategy development for SME’s. This research aims at: 1) Investigations about the strategic management; 2) Concepts of the different strategic levels and their correlation; 3) Analysis of SME’s definition in context of regional market; 4) Investigations of SME’s strategic orientation. This research helps to understand the particularities of strategic scope and its role in company development in the context of national economy. The analysis of the SME’s market of Latvia reveals that most of companies don’t have strategic scope. Research findings disclosed that there are possibility to introduce new methods for strategic development and selection of strategic alternatives.