Innovation is known to be used by some businesses to help them differentiate their trading position within a specific locale.Research has also proven that by adopting a strategy,aims can be achieved and turnover increased.This study will endeavour to use these two key areas to evaluate how,they are used and to what extent they can improve business performance.The study was carried using 145 Micro and SME business,located within the rural county of Lincolnshire.The businesses were taken from specific locations on a random basis which included rural,remote rural and urban settings.Initial findings found that businesses situated within remote areas performed better than those within the other test areas,leading to the conclusion that they use innovation as a strategy to outperform their business rivals.