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This study aims to examine the development strategy and increase the role of small businesses in the E-market place for the procurement of government goods and services. One of the objectives of the procurement of government goods and services is to increase the participation of Micro, Small and Medium Enterprises. At least there are three government policies related to efforts to encourage the achievement of these objectives in the form of; provide opportunities for Micro, Small Business and Medium Enterprises, use information and communication technology and electronic transactions, and develop three Goods / Services Procurement E-marketplaces in the form of electronic catalogs, online stores, and Electronical tendering. Qualitative research is carried out using the applied law research approach. Secondary data analysis is carried out through a literature study of the mandatory policies and theories related to E-market place for procurement of government goods, small business development, and innovation. The results show that small businesses can use Strength, Weakness, Opportunity and Treath analysis to increase their role in E-marketplace procurement of government goods and services. Two strategies can be carried out by small enterprise, namely; strategies for improvement internal weaknesses in the form of strengthening business legality and innovating through information technology and strategies for cooperation or partnerships with business associations, online stores, medium-sized businesses and large enterprises, government cooperatives and micro, small and medium in the city /regency /province, and government procurement policy institutions.