ABSTRACT The main purpose of this study is to identify the problems and prospects of small and medium enterprise in Enugu East Senatorial Zone. To do this, data were collected from both primary and secondary sources. The main instrument of data collection was the questionnaire. The data were presented in tables as frequency, distribution in the data analysis, the techniques of percentages frequencies were used. The hypothesis were tested with z-test technique at 5% significance level. Having analysed the data the following were the major findings; Most of the operators of small and medium enterprise in Enugu East Senatorial Zone make an average daily turnover of N15,000 and profit of about N15,000 daily. There has been a phenomenal growth in the dimensions and nature of small and medium enterprise in Enugu East Senatorial Zone. The growth is mainly on account of people’s desire to be self employed. The problems of establishing and managing small and medium enterprise include lack of capital, lack of managerial skills, lack of business ideas, high cost of operational facilities, scarcity of accommodation, lack of efficient preservation, system and poor environmental and sanitation.

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