Usaha mikro berperan penting dalam pertumbuhan ekonomi dan pengurangan pengangguran di Kecamatan Siman, Kabupaten Ponorogo. Berdasarkan teori keunggulan kompetitif, kepuasan pelanggan, dan penggunaan modal, profitabilitas usaha dipengaruhi oleh inovasi, relasi, dan modal usaha. Penelitian ini bertujuan memberikan wawasan mendalam tentang strategi pengembangan usaha mikro dengan mempertimbangkan inovasi, relasi, dan modal usaha. Penelitian ini menggunakan pendekatan kuantitatif dengan variabel independen inovasi, relasi, dan modal usaha serta variabel dependen profitabilitas usaha mikro. Penelitian dilakukan di Kecamatan Siman, Kabupaten Ponorogo, dengan sampel 95 pelaku usaha mikro yang dipilih secara acak. Data dikumpulkan melalui kuesioner menggunakan skala Likert. Hasil penelitian menunjukkan bahwa inovasi, relasi, dan modal usaha memiliki pengaruh positif dan signifikan terhadap profitabilitas usaha mikro. Temuan tersebut menegaskan pentingnya strategi inovasi, menjaga relasi dan optimalisasi penggunaan modal usaha. Micro-enterprises play an important role in economic growth and reducing unemployment in Siman District, Ponorogo Regency. Based on the theory of competitive advantage, customer satisfaction, and capital utilization, business profitability is influenced by innovation, relationships, and business capital. This study aims to provide in-depth insight into micro-enterprise development strategies by considering innovation, relationships, and business capital. This study uses a quantitative approach with independent variables of innovation, relationships, and business capital and dependent variables of micro-enterprise profitability. The study was conducted in Siman District, Ponorogo Regency, with a sample of 95 randomly selected micro-enterprises. Data were collected through a questionnaire using a Likert scale. The results of the study indicate that innovation, relationships, and business capital have a positive and significant influence on micro-enterprise profitability. These findings emphasize the importance of innovation strategies, maintaining relationships, and optimizing the use of business capital.