Proceedings of World Business Research Conference 21 - 23 April 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-48-1 Challenges and Constrains Faced by Small and Medium Enterprises (SMEs) in Al Batnah Governorate of Oman Zaroug Osman Bilal and Nawal Said Al Mqbali Although many studies have been conducted in this area in many countries, there is still, a view studies on these enterprises have been done in Oman concerning the obstacles and constrains. The main purpose of this paper is to throw light on the challenges and constraints faced by small and medium enterprise (SME) in Al Batniah Governorate of Oman and try to give some suggestions to solve problems. The data has been gathered through questionnaires from small and medium enterprises in Al Batniah Governorate in Oman. The descriptive analysis has been used to analyze the data, nonparametric testing, and analysis of variance. After the data has been analyzed, the results show that obstacles and constrains facing small and medium enterprises in Al Batniah Governorate accordance to their importance are as follows: the investment environment come fist obstacles, the marketing obstacles come second, followed by finance obstacles, capabilities of business owners, while the legislations and regulations obstacles came last. Some of the recommendations have been presented which call for more attention and concentration on solving the obstacles facing SMEs in . Keywords: SMEs, Challenges , Constrains ,Al Batnas, Oman ______________ Zaroug Osman Bilal, Assistant professor, College of commerce and Business Administration, Dhofar University, Sultanate of Oman Email: zosman@du.edu.om. Nawal Said Al Mqbali, Faculty of Business, Sohar University, Sultanate of Oman. Email: nawalm@hotmail.com. 1