We talk about the role of SME’s in overall economic development, wealth creation and distribution. In fact countries have relied on SME’s and really done and doing well. Small, medium and micro are the terms used by the scholars and institutions but in fact the issues these SME’s goes through are the same as a big organization. But how SME’s respond to an internal or external situation is different than its big brothers. While the country talks the importance of SME’s still SME failure rate is very high around 45% in Sri Lanka (Mirror Business 01.04.2016) and it is worth studying the reasons and find remedies.