The fourth industrial revolution has compelled small and medium enterprises (SMEs) into a new challenging arena. In an industry 4.0 SMEs are facing very complex and life threating issues such as latest technological advancement, pressing the gap between virtual reality and the real world, information pollution, internationalization of business, unpredicted and highly volatile customer’s demands. The foundation of industry 4.0 is mainly based on intellectual capital management. Traditional entrepreneurship concept is unable to address these challenges in a befitted manner. In the twenty first century there is a great need to propose a new model that will enable to the smart organizations to alive and stay as a competitive player in a knowledge-based economy. On the basis of the related literature and intellectual entrepreneurship theory this study offered a conceptual frame work of intellectual entrepreneurship that will help to address the fierce issues of SMEs in industry 4.0 context. This model is based on three pillars namely, academic, intellectualism and entrepreneurial intention. This is a first and unique study in Malaysian context and it will be milestone for the potential researchers to address the challenges of SMEs.