The paper focuses on the importance of knowledge management in the knowledge-driven economy, and its role for SMEs. It stresses the need of linking knowledge management strategy with the corporate strategy in order to gain maximum benefits. The success factors for knowledge management implementation are considered as well. A special focus is given on the need to undertake knowledge audit as an initial step for any knowledge management initiative, as well as a tool for monitoring knowledge management implementation and results. Some strategic approaches suitable for KM in SMEs are presented as well.