Abstract
One of the main considerations in establishing a Creative Industry in Indonesia is the existence of an
appropriate and sustainable business concept, but the problem is that not all Small and Medium
Enterprises (SMEs) in Indonesia have and think about this. This is because there is no innovation model for
developing business concepts that can be used as a guide for SMEs in Indonesia. The main objective of
this research is to produce a business innovation model for SMEs in the handicraft sector. This model
contains a continuous innovation matrix that will make the sustainable business concept achievable. The
sample of this research is 55 SMEs in the potential craft sector in the Serang, South Tangerang, Tangerang
City, and Cilegon areas. The research data were collected through interviews, FGDs, and questionnaires.
From the data collected, analyzed and made a matrix of SME business innovation models which can be
implemented in the handicraft sector SMEs in Banten Province. The model from this research is expected
to be an efficient framework that is useful for assisting SMEs in the craft sector during the current COVID-
19 pandemic.