Abstract: This study investigates the socio-economic impacts and determinants of micro and small enterprises (MSE) using 100 samples of MSEs in Wolkite town. The majority of enterprises in the surveyed town are MSE and large numbers of the residents made their livelihood through micro and small enterprise. The finding of the study reveals that MSEs have socio-economic impacts such as employment opportunity and income generation. In terms of sector, manufacturing creates more job opportunity than service and trade sector.