This paper extends previous studies on business model innovation (BMI) by analysing the drivers and outcomes of BMI in micro, small and medium-sized enterprises. The paper develops a research model, which analyses these relations using partial least square squares modeling on a data set of 71 Slovenian SMEs. Results suggest that innovation and environment positively influence the level of BMI in the enterprises, while in our case the contrary is found for technology. In addition, the results show that the level of BMI contributes positively to BMI outcomes and further to overall business performance. The results of the research can be useful for Slovenian SMEs that innovate or intent to innovate their business model(s).