After fall in oil prices a lot of sectors are affected in Oman. Oman is one of the country’s which fully was depending on income from petroleum products also the people were receiving subsidy from the government for many things. Suddenly, after the fall in oil prices government affected very badly and like the other GCC countries, they decided to remove the subsidy from the oil price also to cover the loss, the government increased the rates of a lot of services. SME’s are affected very badly by these decisions. A lot of SME’s started in delaying in the payment and not performing well. In my research, I will cover the challenges which they are facing it, the reasons of the low performance and suggestions which will help them to perform better.