Small and medium enterprises (SMEs) play a significance role in economic, industrial and social development of a country. SMEs in Pakistan assume a basic part in the financial development, resourceful and innovative development, sourcing to large businesses, house enterprises and advancing monetary recharging and social turn of events. SMEs are considered as one of principle elements to decrease poverty, help up public economy. This can be the base of employment and communal uplifting. Pakistan is a developing country, and Pakistani SMEs have a lot of room to boost up the country’s economic development. In Pakistanis economy the small businesses could execute better and contribute to the GDP of Pakistan’s economy, like that of many developing countries is a direct reflection of its SME sector. This thesis aim to study the issues in growth and development of small and medium enterprises (SMEs). Data was collected through semi structured interviews from SME’s owners and Managers using purposive sampling technique. The study is qualitative in nature and thematic analysis was used for analysis of the study. Each sector has their own issues which hinders their growth and development. The study concluded the major issues which hamper the growth of SMEs in the area was financial constraints, security issues, lack of formal education and poor government support. The government should encourage the banking system in North Waziristan erstwhile FATA KPK to facilitate the business community and maintain law and order situations so that the businesses grow, operate and perform well. To overcome the issues of illiteracy and unskilled workforce, government should establish trade schools and training centers in District North Waziristan KPK. Supervisor:- Dr. Mariam Mohsin