This study seeks to explore the evaluation of SMEs and Entrepreneurship environment in Libya. Hence, this research seeks to investigate the following research issues that enable discussion of the external and internal factors that are hindering the growth of SMEs as well as other barriers affecting the SMEs' growth in Libya. This research is based on comprised of using a mixed method approach that includes both qualitative and quantitative research methods. Out of four hundred 400 questionnaires administered, there only, two hundred and nine 209 were returned, and these were analysed using both descriptive analysis (percentage and table) and analytical analysis (ordered logit model). Findings from this study based on the ordered model of growth regression show that age of firm and size of the company both have significant negative impact on the growth of firms while management qualifications, growth aspiration of entrepreneur and lifestyle of entrepreneur all have significant positive impact on the growth of firms.