In small and medium-sized enterprises (SMEs), female entrepreneurs face significant challenges in pursuing innovation, particularly in developing countries with limited resources and societal norms that do not offer many innovative opportunities. In conjunction with PRISMA guidelines, this systematic review compares core determinants regarding the innovation capabilities among female entrepreneurs and strategies to break barriers. The common threads were uncovered in this literature by reviewing 28 studies that reflected four broad research topics: access to finance, social networks, innovation strategies, and leadership styles. Specifically, social networks are essential in enabling innovation, especially when money resources are constrained. In addition, female entrepreneurs frequently engage in incremental innovation and display collaborative leadership styles. This study explores the factors that influence women entrepreneurs in SMEs to improve their innovation capabilities and examines the intersection between gender, innovation, and SMEs.