This research aims to determine the best approach to effective security in a cloud-based environment while taking security challenges to SMEs, countermeasures, and the best way for SMEs to use cloud—based services. A crucial tool for reducing information technology expenses for small, medium-sized, and mini organizations is cloud computing. As a result, SMEs confront a variety of difficulties in addition to a general lack of resource competence, including a lack of Infrastructural development and expertise. This further limit the SMEs capacity to compete with large corporations and peers in the field. Moreover, due to security, trust, and privacy concerns reasons, many SMEs are hesitant to utilize cloud computing services, as well as regulatory risks and compliance implications. Past research shows an increasing number of cyber security attacks targeting SMEs in cloud environments. To deal with security threats, there is a need to set up best procedures and principles that SMEs can follow. This research presents two research objectives: to recognize the security risks and difficulties SMEs are facing in the cloud environment and select the most effective mitigation measures and to establish a framework for SMEs’ security strategy in the cloud computing environment.