While the Ethiopian government financed public institutions of higher learning may still view themselves as bastions of education, they are businesses subject to the market forces. They are under increasing pressure to demonstrate value for money- quality outcomes, excellence, and cost effectiveness- in response to the government fund and student cost-sharing. Such switching from haven of bastion to a service market-driven and customer focus is a challenge. It requires a change in management mind-set (who are the change leaders), change in culture, changes in the ways people work and are rewarded, and new ways of implementing customer solutions and relationships. Thus, adapting an entrepreneurial approach is not a matter of choice, but an issue of survival. In view of this importance, an attempt has been made in the present study to explore, analyze, and measure the perceived quality of services rendered by institutions of higher learning in Ethiopia. Therefore, this paper has significant importance for the higher education's academic staff, management and students, and anyone else who want to know and understand the very nature of service and its dimensions for measuring it.