Small-Medium Enterprises (SME) or in the Indonesian language Usaha Mikro Kecil Menengah (UMKM) can be the solution to reduce the level of unemployment in Indonesia, therefore, improving business performance of SME has always been the focus of the government. This research is aimed to analyze business strategies applied by SME to improve their business performance. The analysis technique used was Structural Equation Modelling with variance based approach known as Partial Least Square Path Modelling (PLS-PM) The model calculation utilized software XLSTAT 2017. The data for this research were collected through web survey involving 94 Small Medium Enterprises. The research analysis indicated that business strategy variable had a positive and significant influence on the business performance of SME. The result can be used as a reference to improve the business performance of SME fostered by PT. Telkom Indonesia.