This study has been intended towards detecting the prime constraints that are hindering the desired growth, continuation and sustainable existence of the SMEs in the city of Khulna. Apart from that principal objective of this dissertation also intended towards obtaining few relevant goals like uncovering the relative pictures of the different sectors as far as facing different constraints are concerned. In order to achieve the above mentioned objectives quantitative and qualitative research works has been carried out in the city of Khulna. Responses were collected from 200 SMEs in the city through structured questionnaire and face-to-face interview methods. Data has been restored in the SPSS software and output produced by the software has been analyzed by utilization of descriptive as well as quantitative data analysis methods. The output suggests that there is strong level of existence of different kinds of constraints in the city. The mean score of the descriptive statistics expose that financial, technological, regulatory, infrastructural, macro, market, human resources, law and order and raw materials constraints are severely affecting and interrupting the normal development.