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Innovation is believed as one powerful weapon to survive in modern competitive industry. Both Large organizations (LOs) and Micro, Small and Medium Enterprises (MSMEs) are trying their best to keep up with the innovation within their firms. However, due to its nature in lack of resources both human resource and capital, it is significantly difficult for MSMEs to pursue innovation either in service or product offered. This qualitative study reveals the substantial meaning of innovation in MSMEs and strategy to conduct innovation where it focuses to micro businesses whose owned by students. These research objects are chosen due to their capability in presenting innovation from their educational background and in-depth knowledge. This study found that innovation capabilities is not enough to assure innovation culture in the business especially innovation paradigm to the founder. 2 (two) out of 3 (three) modern innovation choices are more essential to be applied to micro business which are inclusive innovation and collaborative innovation. Where the other 1 (one) innovation type, open innovation is more suitable to LOs. Following to that, this article also put the strategic steps to persevere innovation culture in Micro Businesses.