Small and Medium Enterprises (SMEs) are recognized worldwide as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. The aim of this paper is to assess the performance and contribution of Small and Medium Enterprises (SMEs) in the development of Bangladesh. Descriptive statistical tools were used to assess the performance and productivity of SMEs. Study results revealed that SMEs have noteworthy contribution to GDP (gross domestic product), employment generation, poverty alleviation, women empowerment and small and cottage industry sector. It is also found that the performance of SMEs is not satisfactory enough of the country may be due to lack of sufficient financing, lack of skilled workers and political instability. The authors also tried to recommend some suggestions for overcoming the lacking.