Innovation, which can be broadly described as the creation, commercialization, and use of novel goods, technologies, and services, is acknowledged as a crucial factor in the process of economic growth. The capacity of businesses and entrepreneurs to take economic decisions based on long term consequences for economic and social welfare advantage by commercialising new products and processes is crucial for increasing a nation's economic wealth, as world economies become more integrated and interdependent. Sufficient literature supports significant role of social media on the performance of SMES in emerging and mature economies. This paper attempts to highlight the impact of social media marketing on the earned benefits of MSMES and outlines the various obstacles that inventive businesses in developing nations face, including access to formal financing and external markets. In this research, the relationship between a capital budget's allocation for procuring new technology and sales performance is investigated between 2020-2022 using a sample of 352 Delhi-NCR SMEs. Data was obtained by an online questionnaire-based survey. The data was analysed by step wise Regression method using SPSS. The findings show that: (1) Sales are favourably and significantly impacted by the portion of capital funding allocated for technology adoption (2) The impression of business owners and managers regarding the availability of formal financing is adding significant explanatory power in the relationship (mediated by innovation) between the percentage of their capital budgets devoted to investing in new technologies and changes in sales. Study concludes that level of innovation have a good and significant impact on sales output in the regression design which is utmost requirement to sustain in competitive environment.