Business Intelligence is one of best way to analyze the critical capabilities of organization, but the implementation phases of these competences are frequently overwhelmed with tribulations. That’s why many projects of such capabilities fail, while others succeed. The basic purpose of this research is to identify the critical failure factors (CFF) in the pre implementation phase of Business Intelligent (BI) system and to test association between these critical factors. Small and Medium enterprises (SMEs) cannot be neglected in developing countries like Pakistan. They are chosen as target population because of its vital role in the development of economy such as creating employment opportunities, increasing GDP%, increasing the volume of export etc. Based on four hundred and fifty respondents, the barriers of cost are valuing among top five with highest value of mean which are additional cost associated with the managing BI, lack of financial resources, upfront cost, cost of obtaining BI software and setup cost respectively. This symbolizes the costing factor yet a foremost barrier in preponderance items in order to analyze BI in pre-implementation phase.