Although there exists a wide consensus that small and medium sized enterprises play a vibrant and significant role for the growth and development of a country. Despite of the importance of the SME sector this sector is facing various obstacles which in turn can affect the growth of this sector. This research will analyze the obstacles faced by small and medium sized enterprises in Pakistan, Bangladesh and India. This research by using the data from World Bank Enterprise Survey and with the help of graphical analysis will determine the magnitude of the obstacles and provide the statistics about the obstacles faced by small and medium enterprises in Pakistan, Bangladesh and India. Moreover growth of firms will be studied by applying Pearson’s correlation analysis.