Creativity is an essential source of innovation for small and medium enterprises (SMEs). Moreover, one challenge in SMEs is to transform the novel and useful ideas that arise from creativity into innovation, hence the interest of researchers in advancing knowledge in this area. This study analyses: (a) how the creative process influences the results of creativity, (b) the role that risk-taking plays as a mediator in the relationship between creativity and product innovation, and (c) the impact of innovation on the performance of SMEs. The research model is validated with data from 139 Chilean industrial SMEs, using the Partial Least Square (PLS) method. The results show the importance of the creative process is different stages in SMEs. It also shows that risk-taking serves as an enabler in SMEs’ ability to turn creativity into product innovation. We conclude our findings by illustrating the positive effect of product innovation on SMEs’ performance, a crucial issue in their competitiveness. These findings allow managers to verify that creativity is not a random result but an intentional process.