Abstract: This study is about problems in financing and managing small-scale enterprises in rural areas of Bangladesh. Small Scale Enterprise (SSE) is the industrial or business undertaking where owners, individuals, friends or relatives supply capital, small management, operation is local based and size of the business is small and mainly help in supplying raw materials, marketing goods and services. In analyzing their business it is found that majority are sole proprietorship and family business and financed by families, friends, relatives and from own source. In studying the potentials of their business, it is found that improvement of their socio-economic status and living conditions, establish them as economically independent, demand for their products in the local market, availability of raw materials, cheap and available human resources are main influential factors. Inadequate amount of loan, excessive formalities in loan processing system, high interest rate and loan processing cost, unfavourable repayment policy and absence of financial institutions in rural areas are main problems in financing. The operating problems are inadequate infrastructure, inefficient marketing facilities and market information, lack of proper training and skilled workers, lack of proper R&D facilities, outdated technology and technical know-how etc. These problems are important to solve for proper development of SSEs through the intervention of state, social and political institutions that will ensure economic development of the country.