Successful innovation is a key to business growth. In the realm of technological development, innovation processes have been transformed into various forms, like open innovation, crowdsourcing innovation, or collaborative innovation. This research would like to focus on open innovation processes to reach out to the common stakeholders in the entrepreneurship system through small and medium enterprises. It has been observed that to provide innovative services or products to the outer periphery of the customer chain, SMEs play an important role. Hence, focusing innovation for SMEs would lead to a newer dimension of innovation research for better business and economic growth. The research emphasizes on various open innovation strategies for SMEs at the outset by focusing transformation of innovation processes from a closed boundary leading to a networked paradigm, try to provide some overview on a few innovation strategies, and develop a business model. The paper also discusses about some challenges and barriers that SMEs are facing in implementing open innovation strategies. Before conclusion, it put forwards issues of future research.