This study attempts to investigate the relationship between sustainability innovation, firm performance, financial stability, and competitive advantage. In order to do so, the authors explore the effects that the implementation of a new business process which targets sustainability has on three small and medium sized businesses (SMEs) operating in Italy. Within the methodology section the authors have discussed the various criteria utilized to select an appropriate and adequate sample of SMEs. Semi-structured interviews were utilized to gather qualitative data so as to reflect the lived experiences of various members of SMEs' personnel. Data, charts, and various reports were utilized. The findings suggest the presence of a positive relationship between sustainability innovation and firm performance. Furthermore, the authors have gathered and analyzed evidence which supports the hypothesis that sustainability innovation has a positive correlation when it comes to financial stability.