In developing countries, the significance of micro, small, and medium-sized enterprises (MSMEs) in driving economic growth and social development is paramount. These enterprises contribute substantially to job creation, employment, and GDP growth. The classification of SMEs varies globally based on factors such as industry, assets, number of employees, and sales. In countries like the United States, EU nations, China, India, Bangladesh, and Nepal, specific criteria define the categorization of SMEs. MSMEs in India, Bangladesh, and Nepal contribute significantly to GDP and employment, but face challenges due to a projected $3.6 billion financing gap, a significant challenge in Nepal, where they employ over 2.7 million people and make up 90% of registered businesses. SMEs face obstacles like limited market access, policy biases, and financing issues. Governments must support them through international acts, independent regulators, and collaboration with the private sector.