This study investigated the relationship between innovativeness and performance of small and medium enterprises in Rivers and Bayelsa states of Nigeria. The unit of data generation was the organization and the corresponding level of analysis was the macro-level. A total of three hundred and sixty(360)small and medium enterprises studied constituted the study population, and a sample size of one hundred and eighty-six (186) was drawn using the Krejcie and Morgan table. Data was collected through questionnaires distributed to the respondents. Using the Statistical Package for the Social Sciences version 22, and inferential statistics such as Pearson Product Moment Correlation Coefficients, regression and p-values were calculated in order to ascertain the nature and direction of the proposed relations and for testing the stated hypotheses.Results revealed positive and significant relationship between innovativeness and measures of small and medium enterprises performance. Therefore, the study specifically found that innovativeness led to improved customer satisfaction, growth and social performance of small and medium enterprises in Rivers and Bayelsa states. The study recommended that small and medium enterprises should apply and adopt innovativeness in the operation of their businesses to improve performance.