This paper sets to examine factors inhibiting entrepreneurial innovative in Plateau State, Nigeria. In recent times, stagflation and high unemployment has caused a renewed interest in the factors determining economic growth. The years 2008 and 2009 have seen a reevaluation of the role of small firms and a renewed attention for entrepreneurial innovativeness (i.e. introduction of new products, new methods of marketing, adopting new method of technology, and new ways of resources combination). As the 21st century unfolds, entrepreneurial innovativeness is viewed as critical pathway to enhancing economic growth (particularly, employment). To effectively measure the extent to which the factors impede entrepreneurial innovativeness, relevant information concerning these variables from 120 owners of SMEs in Mangu LGA of Plateau State was obtained through Questionnaires. The result from the analysis revealed that entrepreneurs in Plateau State have not operated innovative entrepreneurship that could enhance employment. We recommended that SMEs in Mangu LGA should design a standard information and technology system that could aid their entrepreneurial innovativeness that will translate in enhancing employment generation