Abstract: The objective of this study was to critically analyze the perception and competency MSEs of the Dire Dawa Administration, Ethiopia, towards business, technical, entrepreneurial and interpersonal skills. The study tried to investigate whether there was statistically significant skill difference between successful and unsuccessful enterprises in the administration. The total 171 sample respondents from 306 MSE’s included in study using proportionate stratified random sampling technique. Descriptive statistics was calculated to determine the perception and competency MSE’s of the administration towards set of skill required for success. T-test was also applied to measures whether is significant difference between the mean scores of the two samples (Successful and Unsuccessful MSES of DDA). The finding of descriptive statistics indicates that among the different set of skills, technical skills were perceived as more important for MSE’s success followed by interpersonal skills, entrepreneurial and business skills. The finding of T-test revels that there is a significant skill differences between successful and unsuccessful enterprises MSE’s in DDA.