Abstract: This study attempted to explore the challenges faced by Kuwaiti entrepreneurs in the small business set up. To reach this objective, 120 structured questionnaires have been spread to random entrepreneurs in Kuwait. A total of 100 questionnaires were returned: resulting in 80% usable response rate. Descriptive statistics which involve the mean, standard deviation and the Mann-Whitney U test are employed to examine the participants’ answers. The findings of the analysis showed that lack of capital, entrepreneur’s skills, the government support, market opportunities and risk are the main challenges by entrepreneurs in Kuwait. Furthermore, the study showed some suggestions which might assist to encounter those challenges faced by entrepreneurs such as attending entrepreneurship and financial management training to enhance their competencies. Keywords: Entrepreneurs, Start-ups, Challenges, Kuwait JEL Classification Number: G11, G32