This study had three objectives: mapping micro, small and medium enterprises (MSME) in the area of Ternate according to the potential and characteristics of the community; identifying strategies to improve business competitiveness; and providing recommendations to relevant stakeholders. By using a qualitative method through structured interviews and focus group discussions involving representatives from the MSME community, this study found that MSME has the potential to be professionally developed, not only as a small-scale home industry activity but also as a leading sector in Ternate. This can be seen from the spread of creative industries in various districts, each of which has distinctive features of superior products in the MSME sector. These peculiarities have the potential to be arranged in the form of creative industry clusters by creating certain product areas in several districts that have the same characteristics. However, there has not been any intensive coaching from the local authority, including the absence of Corporate Social Responsibility (CSR) from large companies as a form of social responsibility to develop MSME activities.