ABSTRACTThis article provides an analysis of factors affecting the level of product innovation in a small enterprise setting. The perspective chosen considers the interaction of management and environmental factors and its impact on product innovation and explores how these factors interrelate to influence small business success (growth). A causal multi‐site model is developed which will assist in identifying product innovation determinants for high‐growth and low‐growth firms. Moreover, direct and secondary explanations of product innovations will be isolated. Twelve case studies will be examined. The conclusions are that, for high‐growth firms, determinants of product innovation that influenced small‐business success (growth) were technology, competitive edge, research and development, product life‐cycle, market change, product/market mix and customer base. For low‐growth firms, customer base was a major determinant of product innovation which influenced small‐business s