Abstract: Identifying factors that affect development of micro and small enterprises (MSEs) were the study purpose. The study could help to have deeper insights about challenges MSEs faced. It could also inform leaders’ role they should play to promote MSEs in the zone and sample towns. The target population was entrepreneurs operating in services, manufacturing, construction, trade, urban agriculture, and MSE leaders. Data collected from MSE owners and leaders. Data sources were primary and secondary. Data collection tools were interviews and questionnaires. Collected data analyzed using descriptive statistics and factor analysis with the help of SPSS software.