MAJOR ADVISOR: ABABE SHANKO (PhD CANDEDATE) The study's purpose was to identify the challenges, possibilities, and prospects of SMEs in the Nunu Kumba district and then give recommendations based on those problems. Primary data was collected from 166 SMEs in 300 enterprises in the Nunu Kumba district. This study conducted by descriptive survey research design with the qualitative and quantitative research methodologies. The study covers nearly each of the sectors identified by the Nunu Kumba District Administration's SMEs office. As a consequence, the study highlighted the main barriers to SMEs' development while accounting for all industries. This was accomplished by gathering data from primary and secondary sources. The questionnaire was used as the primary data collection tool, supported by interviews. The data was identified using frequency and distribution tables, as well as percentage and frequency approaches. The empirical studies identify major problems that appear to affect the performance of SMEs in the Nunu Kumba district, including financial challenges, insufficient infrastructure in the study area, marketing challenges, management competency challenges, and human capital challenges, in that order. My research found that the challenges and problems of SMEs in the Nunu Kumba area have several centres and so can only be adequately addressed by a broad and coordinated effort by all stakeholders. Governments and their agencies, banks, regulatory bodies, tax authorities, employees of SMEs, multilateral and bilateral organizations and funders. Key Words: Small and Medium Enterprises, prospective, challenges, NunuKumba.