The research aims to study the economic obstacles facing small and medium enterprises and ways to overcome them to achieve sustainable development. In order to achieve the research objectives, the descriptive analytical method was used in the practical aspect, based on the answers of the study sample and on the study data that was conducted through the questionnaire, which is the tool used and which was distributed to A sample of (106) projects represented in service, commercial, industrial, and agricultural projects. By testing the hypotheses statistically using the statistical program SPSS, the study concluded that small and medium enterprises suffer from a lack of liquidity, which limits the development and progress of these projects. The reason is the absence of the necessary funding for the continuity of the project. There is no database available. In the real sense, or even if they exist, their performance is weak. The lack of technical expertise and competencies in small and medium enterprises in Cairo Governorate and the weakness of training programs, small and medium enterprises in Egypt suffer from many problems, obstacles and challenges that affect the efficiency of the producing unit and its ability to compete externally. The study recommended increasing awareness of the importance of these projects, clarifying their role in economic development, and encouraging banks to finance these projects and provide the necessary loans and support.