Small and medium enterprises are of vital importance to business ecosystem in cooperative innovation, whose business model play key roles in their performance and sustainable development. In order to research the relations between business model characteristics and enterprise performance of small and medium enterprises, the study collected 290 small and medium enterprises located in Jiangsu and Zhejiang province to test the hypothesis, which showed that value co-creation and innovation of business model have significant positive impacts on enterprise financial performance, which are both realized through the intermediary role of Inimitability. The conclusion has not only found out the relationship between the business model characteristics and firm performance, but also given some useful solutions for small and medium enterprises to improve performance by mordifying business model.