New digital technologies, referred to as Industry 4.0, can create many opportunities, not only for larger organisations, but for small and medium enterprises (SMEs) as well. However, for SMEs to create value from Industry 4.0, the digital technologies must be applied in alignment with the SMEs’ business model as the SME business model is the means through which the SME creates value. This study aimed to identify the key impacts of Industry 4.0 on business models SMEs through conducting a systematic literature review and a detailed analysis of 27 papers. We identified 5 primary impact areas namely customer, financial, organisational, employee and cost structure collated from of 23 sub impact areas. In order to report our findings, we mapped it to business model components consisting of value creation, value proposition and value capture. Through considering business model impact, SMEs may be able to leverage the technology platforms in Industry 4.0 towards business value creation and economic sustainability.