Entrepreneurship is important for achieving economic growth in contemporary economies is widely recognized, both by policy makers and scholars. So the main objective of this study is to determine the barriers to growth of small and medium enterprises in Ethiopia. For research design; cross-sectional, descriptive and inferential designs study were used in the study. The study used both primary and secondary data. Pertaining to data analysis the researchers used quantitative data analysis techniques mainly descriptive analysis using percentages, tables and mean were employed. Accordingly, this study identified that strong competition in the markets, high level of interest rates on loans, poor infrastructure, speed of debt payment by customers, unavailability of an appropriate property, state of the country’s economy, low market demand for firms’ products/service, pricing of competitor products, in availability of raw materials, attitude of banks and low availability of finance from lenders were rated as high barriers for small and medium business growth. While, specially strong competition in the markets, high level of interest rates on loans, and poor infrastructure were as the highest barriers for small and medium business growth in developing country.
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