One of the key success factors for businesses is the innovation and innovation capabilities and due to the fact that such capabilities cause companies well adapted to the complex environment, firms need to be innovative. Meanwhile, the relationship between innovation and intrapreneurship is consequential. In fact, the innovation is a prerequisite and of inevitable factors for intrapreneurship. The present paper reviewed this and investigated the role of innovative capabilities in Small and Medium size Enterprises’ survival with the mediating role of intrapreneurship using Structural Equation Modeling. Research methodology is of descriptive and in terms of objective, is of action type. Statistical population is 180 personnel of the Tehran Hamburger Ltd. using simple random sampling, 123 have been selected as the sample of the research. After collecting and analyzing the data, the results showed the positive role of innovation capabilities on firm’s survival with the mediating role of itrapreneurship.