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The implementation of CAFTA has been implemented since January 2010 and the implementation of MEA will be realized in the year 2015. This article aims to provide recommendations in the form of strategies to improve the competitiveness of small business in dealing with the implementation of CAFTA and MEA. Method used in this article writing is by literature review. In order to remain able to survive and to take advantage of opportunities of the implementation of CAFTA and MEA, then the small business must improve their business competitiveness and their product competitiveness. Employers/owners of small business in their spirit of entrepreneurship and innovation, has to become a driving force to improve their business competitiveness. By improving the business competitiveness then in turn will encourage the creation of product competitiveness. Other things that should be a priority of small business are improving the cooperation among small business units or between the centers of small business and also improving the cooperation network with stakeholders. The role of government is expected as a complement to encourage the various efforts made by small business to improve their competitiveness. With a conducive business climate created by government, it will facilitate small business to improve their competitiveness. Other stakeholders should improve a partnership which was created by small business, either in the form of education and training, promotion, and other supporting facilities. Keywords: small business strategy, competitiveness, CAFTA, AEC.
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