This research focuses on the role of small and medium enterprises (SMEs) in supporting the development of developing economies by explaining the nature of SMEs and their mechanisms in achieving economic development in developing countries, where SMEs have received great development and great interest in many international organizations and economists, as one of the most important means that lead to Economic development, due to its superior ability to provide more job opportunities for youth and

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... combat unemployment, as well as its need for low investment costs to match with the capabilities and aspirations of developing countries. However, it was noted that small, medium and micro enterprises (SMMEs) have challenges and obstacles that stand in the way of developing these enterprises and limit their ability to work and contribute to driving economic growth, and these obstacles are many and multiple, but lack of funding is the most important obstacles to the growth of these enterprises in developing countries, as the success and progress of SMEs requires good facilitated financing that helps in sustainable economic development of these enterprises, and towards these challenges, it requires a lot of suggestions and solutions to work to remove them, and this is what was presented in the content of the research. The analytical descriptive method was used to describe the phenomenon and then analyzing it and finding appropriate solutions. The study concluded on a number of conclusions, the most important are that the sector of SMMEs represents a very important sector in the structure of the industry sector, and has a high priority within the priorities of economic and social development in any country in the world currently. The study also made a number of recommendations and the most important are: coordination and integration between government organizations and civil society organizations, and the establishment of a unified and specialized database for small and medium enterprises and the establishment of small banks similar to the bank of the poor in Bangladesh (Grameen Bank).