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The purpose of this study is to develop a basic theoretical model of increasing the competitiveness of Small and Medium Enterprises through financial inclusion mediated by the implementation of social responsibility of large companies. While the general objective of this study is to develop an empirical model of testing and analyzing the improvement of the competitiveness of Small and Medium Enterprises through the financial inclusion of business actors mediated by the implementation of social responsibility of large companies. The object of this study is batik Small and Medium Enterprises in Bantul and Kulon Progo Regency, Yogyakarta, Indonesia. The data used are primary data obtained through distributing questionnaires to batik entrepreneurs in Bantul and Kulon Progo Regency, Yogyakarta, Indonesia. The sampling method uses saturated samples in which the entire population is sampled in this study. Data analysis methods used in this study are descriptive and inferential analysis. Descriptive analysis aims to describe the data obtained from each variable measured. Descriptive analysis is used to determine the characteristics of each indicator in each of the measured variables. While inferential analysis uses Structural Equation Modeling analysis tools with the Partial Least Square program. The results showed that the implementation of corporate social responsibility has not been fully enjoyed by batik entrepreneurs in Bantul Regency and Kulon Progo Regency Yogyakarta Indonesia. This happened allegedly still low financial inclusion of some people in Bantul Regency and Kulon Progo Regency, especially batik entrepreneurs. This condition causes obstacles for batik businesses to experience problems in developing their businesses.