Small and medium-sized enterprises (SMEs) have emerged as significant forces in the advancement of economies, actively promoting long-term expansion. These vibrant businesses in the Sultanate of Oman have recently made a significant contribution to the steady growth of domestic income and the nation’s sustainable development. The purpose of this study is to examine the difficulties faced by SMEs in the Sultanate of Oman and shed light on how they affect sustainable development. Moreover, the study aims to pinpoint the major obstacles and factors that affect the effective implementation of corporate social responsibility (CSR) initiatives within small and medium enterprises by combining questionnaire surveys and interviews. The study also aims to look at the current state of CSR activities carried out by SMEs in Oman. The study employs both descriptive and analytical methods to generate comprehensive insights. The research sample consists of five SME owners and 102 participants. The primary data in this research was collected using questionnaires and interviews, enabling a thorough investigation of the difficulties faced by small and medium enterprises in Oman. In addition, the secondary data sources mainly depend on previous studies on this research, which were done by reviewing various academic articles, books, and research in the field of social responsibility for small and medium companies. The findings of this research indicate that CSR activities have been perceived differently by the government and SME owners. However, the indulgence in CSR activities is directly related to their performance and image building in the Sultanate of Oman. This study seeks to find some of the determinants that stand as a barrier in front of these small and medium companies to play their effective role in society.