Abstract: Micro-innovation of SMEs is faced with the problem of spontaneous blindness and uncertainty of results. The key to the problem is the answer to the implementation paths of micro-innovation. Based on the in-depth interview data of 44 enterprises in 5 cities of Zhejiang Province, using the grounded theory of qualitative research method and with the help of Nvivo 11.0 software auxiliary coding, the implementation strategies of micro-innovation, which are coupled and progressive, such as user interaction, trial-and-error learning, rapid iteration, cross-boundary integration, and single-point breakthrough, are concluded. Then preliminarily construct a new development path model of SMEs.The implementation of micro-innovation relies on three key mechanisms: user interaction mechanism, iterative trial-and-error mechanism and cross-border integration mechanism. Among them, the user interaction mechanism runs through the whole process of micro-innovation, the iterative trial-and-error mechanism makes micro-innovation spiral upward, and the cross-border integration mechanism guarantees the advancement of micro-innovation. By analyzing the development path of Micro-innovation of SMEs and summarizing the key mechanism of their successful realization, the relevant theoretical research has been improved, and it has positive guiding significance for the practice of SMEs.