In many countries, there is now a wide recognition of the contribution of micro and small enterprises (MSEs) to economic growth. Within the Ethiopian context, despite the potential contribution of the MSEs to poverty reduction and employment creation, the Government had not, until very recently, extended adequate support to the development of the sector. To date, there has not been an independent assessment of the contribution of the MSE development strategy to poverty reduction, job creation and business growth either at the federal or Regional levels. To fill the gap, the Forum for Social Studies (FSS) commissioned this study in 2009 to assess the benefits and long-term sustainability of the strategy as well as the businesses/enterprises that have been set up by the large number of entrepreneurs. The aim is to provide policy inputs that can help create a vibrant and dynamic MSE sector and enhance its potential contribution to the countryis overall development.