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The difficulties of functioning or crisis situations of Small and Medium Enterprises are not the least in Benin and particularly in the city of Porto-Novo. The objective of this research is to analyze the organizational and political-economic factors of the failures of small and medium-sized enterprises in the city of Porto-Novo. Documentary research, observation and interviews, which have as their respective tools the reading grid, the observation grid, the interview guide and the questionnaire, are the techniques that allowed us to collect both qualitative and quantitative data from ninety-two (92) actors. These data were analyzed according to a main model of analysis which is the structurofunctionalism. The results obtained revealed that businesses in Porto-Novo are confronted with management problems at both the administrative and organizational levels. Secondly, the dominance of the informal sector and the opening of the city to its large eastern neighbor, Nigeria, does not favor the development of small and medium-sized enterprises. Keywords: Failure, Small and Medium Enterprises, factors.