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To Understand and Explain about the effect of creation, the use and management of knowledge as a factor of economic performance in the micro and small business, utilizing a qualitative approximation based on the use of narratives, is the purpose of this study, for which a scheme based in a theoretical analysis in order to understand the behavior of the micro and small enterprises, related to the economic performance, the complexity of these sector and the public polices to develop for help them, on the other hand review all the theoretical contribution in knowledge and knowledge management and define what are the available tools, in the field of knowledge, to help to increase the economic performance of this particular enterprises. After the theoretical analysis an empirical work was developed, it was divided into two phases; the first one consider a model to understand the most prominent variables and their application in the analysis of the phenomenon being studied. The second phase is following to identify the type of knowledge that is used by the small entrepreneurs, how this is effectively used and how is it related to the determined factors in the first phase of the study.
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