This research was conducted to answer two questions namely what kinds of problems faced by MSMEs in East Indonesia in general and how the creativity and innovation should be enhanced so that MSMEs have competitive advantage in running the business. This research uses qualitative method with phenomenological approach. The results of this study indicate that the level of creativity and innovation of MSMEs in East Indonesia is still low so that many MSMEs are not growing because of less able to compete. It needs immediate improvements so that Indonesian MSMEs can continue to grow and have a strong competitiveness.