The capability of the entrepreneurs in small and medium enterprises can be realized because of the motivation in their work environment. To improve the capability of the entrepreneurs in small and medium business, it needs motivation by looking at physiological needs or other needs, such as safety and security needs, social needs, appreciation needs, and self-actualization needs. The existence of motivation for the entrepreneurs of small and medium enterprises is the improvement to increase their business capabilities. This study aims to look for the problems that are faced by the entrepreneurs in small and medium enterprises in this case is SMEs/UKM, to motivate themselves to produce quality products and to improve the capability of human resources so that they are able to survive in facing of competition. Therefore, it is necessary to develop an effective model to find the right solution so that the model which is used is Maslow’s Needs Hierarchy. Data analysis techniques use descriptive statistics and analyze the capability of the entrepreneurs in small and medium enterprises through Maslow’s Needs Hierarchy model. The results that are obtained in this study of which small and medium enterprises in Maslow’s needs hierarchy consists of physiological variables are in ‘less good’ category, security needs variables are still not fulfilled, social needs variables are in ‘less good’ category, appreciation needs variables in ‘less good’ category, self-actualization needs variables are in ‘less good’ category, and capability of small and medium enterprises variables are also in ‘less good’ category. In addition to the above variables, researchers add 2 variables, namely innovation and information technology in an effort to develop Maslow’s needs hierarchy to improve the capability of small and medium enterprises