Securing excellent technology as a key element in the fourth industrial revolution is the most important factor in changing the times, and securing the competitiveness of the manufacturing industry is urgent. Small to medium sized industries (SMSI) are showing differences in terms of investment ability and technology compared to large companies, and their level of recognition and response to the fourth industrial revolution is also low. In this paper, we are going to examine the level of awareness and necessity of smart factory through surveys of CEOs, executives and team leaders of small businesses and present development directions for smart factory operation. Finally, this paper proposes the method of improvement for construction of smart factory through systematic analysis with results of questionnaire and backgrounds of smart factory in SMSI.