Hulu Sungai Selatan Regency has a potential of SMI (Small and Medium Industries) sectors can be developed as economic development. Based on RTRW of Hulu Sungai Selatan Regency, the region has 14 SMI are a propeller, pottery, blacksmith, dried fish, purun webbing, pastries, dodol, crackers, imitation jewelry, woven water hyacinth, bamboo, syrup, brown sugar, and saber. There are several issues related to SMI development such as low quality and quantity of human resources, local raw material, limited capital, low competitiveness, conventional production equipment, and lack of media for marketing the product. The purpose of this study is to develop the leading sectors of SMI and improve the economy and quality of the resident. The research method is descriptive qualitative, leading sectors analysis and force field analysis. Data were obtained from primary and secondary survey of relevant institutions and interview to the community. Based on leading sectors analysis, there is six leading sector is a propeller, blacksmith, dodol, dried fish, pottery, and crackers. Based on force field analysis, determined the strategy for using operational excellence’s concept, so that we can develop the industrial sector by minimizing productions cost so SMI’s product can compete by the price and efficient production process.