This study examined the relationship between innovation and the business growth of small and medium enterprises (SMEs) in Mityana District, Uganda. Innovation is widely regarded as a key driver of enterprise growth and competitiveness, yet its contribution among Ugandan SMEs remains under-examined. The study investigated how product innovation, process innovation, marketing innovation, and technological innovation relate to business growth. A cross-sectional survey design with a mixed-methods approach was adopted, and data were collected from 175 respondents comprising SME owners, managers, and employees using structured questionnaires and interviews. Descriptive statistics, exploratory factor analysis, Pearson correlation, and structural (path) analysis were used. Factor analysis confirmed the construct validity of the innovation dimensions, which loaded onto coherent factors and explained 68.4% of the variance. The results revealed a strong positive and significant relationship between innovation and business growth (r = 0.67, p < 0.01), with the innovation dimensions jointly explaining 65.0% of the variance in business growth (R² = 0.650). Product innovation (β = 0.32) and technological innovation (β = 0.30) emerged as the strongest path predictors. The study concludes that innovation significantly enhances business growth and recommends strengthening product and technological innovation, and building innovation capacity among SMEs.