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SME sector is an important part of the economy and acts as a driver for the economic growth of the country. Despite its importance, use of ergonomics and safety management is limited. The purpose of this research work is to assess ergonomic conditions using system approach for the improvement of health and safety, in SME. 250 useful responses from a questionnaire survey method were collected to analyze ergonomics conditions in 37 industries. The ergonomic assessment is helpful for developing guidelines for improving facilities in organizations. The study provides some useful guidelines & recommendations for improving Ergonomics & safety. Ergonomics intervention is helpful for the efficient use of the labor force by creating safe & appropriate working conditions. Findings of this study show that a MSD is a severe problem among SME workers. The SNQ was used to investigate the prevalence of MSDs. The study has identified ergonomic risk factors responsible for the development of MSD.The ergonomic intervention & use of system approach found that there is a decrease in a number of accidents (6.06%), reduced absenteeism (8.77%), improved safety & health, and improved productivity (4.81%)