The reform of government functions is an important measure to help enterprises reduce the burden, stimulate the innovation vitality of enterprises, and promote the development of enterprises. However, there is no research and discussion on how the reform of government functions affects the persistent innovation of enterprises. This study takes 441 domestic small and medium-sized enterprises (SMEs) as the research object, and theoretically constructs and empirically tests the influence and internal mechanism of the reform of government functions on the persistent innovation of SMEs. The research results show that the reform of government functions and the three dimensions (streamlining administration and delegating power, government supervision and public service) all have a positive impact on the bricolage of enterprise resources and the persistent innovation of enterprises, among which public service plays a more significant role in promoting the persistent innovation of enterprises. Resource bricolage has played an intermediary role in the relationship between the reform of government functions and the persistent innovation of SMEs. Further analysis shows that there are obvious differences in the impact of the reform of government functions in different industries, different years of enterprises and different regions. On this basis, this study summarizes the theoretical contribution and practical enlightenment.