Investigating the business constraints that affect development of micro and small enterprises (MSEs) was the general objective of the study. Access to business information, access to finance, managerial skills and access to infrastructure were the specific objective of the study. Theoretical, empirical and conceptual framework parts were reviewed in literature review. The study used both qualitative and quantitative (mixed) research design. The study targeted a sample size of 67 from a target population of 200 SMEs located and registered in Bahi District. Stratified and simple random sampling was utilized in selecting the respondents for the study. The study was based on primary and secondary sources of data. Primary data collection method was questionnaire, interview and observation and Secondary data collection method was through documentary reviews. A broad sample of content, important materials and Cronbach's alpha correlation were the methods used to ensure the validity and reliability. Data analysis was done through Statistical Packages for Social Science (SPSS). The findings were presented in the form descriptive data presentation like of tables, charts and bar graphs.