It is without doubt that foreign owned SMEs are doing exceptionally well in the business environment despite the many challenges that they face. While challenges differ from one small business to the other, the most common challenge that foreign owned SMEs face is lack of funding from either the local government or the banking sector. This is largely due to the fact that most owners of foreign small businesses enter the country illegally and do not have the necessary documents to apply for bank loans. But, even with the necessary documents, local banks do not offer loans to foreigners because most foreigners do not have collateral security.