In the past few years, Small and medium enterprises are known as most principal sources of employment in developed and developing countries. These kinds of businesses are so significant for governments because of their specific characteristics and natures, and that they have important share in supporting employment rate and raising growth and economic development of societies. These companies, due to their small size and simple organizational structures, are so flexible toward changes, have acceptable pace in trend of activities execution, competition power in external environment and high capability and capacity for performance development and reaching planned goals by using present resources.Thus the present research, with the goal of indicating the internal strategic factors affecting the small and medium enterprises, and having a literature review of the issue and giving various definitions, gives an integrating model of internal strategic factors affecting the performance of small and medium enterprises and for each of these dimensions, an issue is provided. The main issues of this research is to see whether there is a meaningful effect between management factors, human resources, organizational structures, organizational sizes, organizational systems, marketing and sale, information technology, research and expansion, strategies of companies, production and operation and financial sources of organizations and the improvement of the performance of companies. To confirm or reject of each issue, the related literature and theories were used. The result showed that all issues were accepted. Beside conclusion and results of the research, suggestions were given to managers and next researches.