Surakarta occupies the entire administrative territory with an area of approximately 4,672 hectares. In the national development strategy and policy of the Provincial Government of Central Java, Surakarta completes its function as a tourism city. The existence of several cultural events held in Surakarta such as the Solo Batik Carnival is a special attraction for tourists. Apart from that, Surakarta is also known as a cultural city with tourism potential such as the palace and the presence of small and medium industries (SMI) whose products attract tourists. This study aims to determine the potential of existing SMI products as a tourist attraction and encourage tourism potential in the city of Surakarta. This study uses qualitative methods by observing, reviewing data, and making observations. The results of the study show six SMI Innovative Business sectors which are a priority to be built, developed, and managed in Surakarta, namely fashion, visual communication design, craft, culinary, performing arts, and visual. The leading SMI Innovative Business Centers are relatively spread across five sub-districts in Surakarta City, namely Jebres, Banjarsari, Laweyan, Pasar Kliwon, and Serengan. SMI centers developed to encourage tourism potential and advance the economy in Surakarta City. SMI also cooperates with cooperatives in providing access to capital and product marketing.