Although the strategy formation process in large companies has been extensively and deeply researched, the strategy making in SME (small and medium sized companies) is largely under-investigated by researchers. In our thesis, we find even for entrepreneurial SME owners, the process doesn’t exhibit the characteristics of comprehensive and exhaustive environmental scanning and strategic analysis. Instead, the strategy formation in entrepreneurial SMEs is a combination of systematic planning and improvisation, a combination of proactivity and reactivity. And the limited planning and proactivity is more reflected on the SME owner’s cognitive level, they are strategically aware, sensitive and flexible to any change that will affect their company and immediately know the relevant implications. Our finding is in line with Mintzberg’s insightful notion that “strategy as a pattern” and “strategic thinking”. The SME owner’s opportunistic, intuitive and emergent approach to strategy making often involves more than themselves. Families, friends, company board of directors, accountants, consultants are also influential actors participating and contributing to this process in different ways.