The SME sector contributes significantly to the national GDP, industrial output, export revenues, regional development, and social stability. The business climate in Bengaluru city provides Small and Medium-sized Enterprises (SMEs) with a variety of opportunities across many industries. The purpose of the study was investigating the opportunities for SMEs in Bangalore, and to identify the challenges for SMEs in the study area. The study is focused on entrepreneurs. Cronbach's Alpha, KMO and Bartlett's Test, Principal Component Analysis, Promax with Kaiser Normalization were used to analyze the results. Entrepreneurs Training Institutes, Ministry of MSME, Political Stability, Climate, Infrastructure Facility, Policies And Initiatives Technology Adaptation etc are the opportunities SMEs in bengaluru city. Operational Cost, Market Intelligence, Lack of Information About SME Borrowers, Response to Customer, Competition from Foreign Competitors, Scarcity of Skilled Labour are the main challenges for SME. The extremely significant sector's challenges can sometimes be resolved with the aid of research and development.