The intention of the study was to investigate cause and effect relationship of selected factors on business transformation processes of government-supported manufacturing SMEs: In the case of Addis Ababa city administration. Business transformation process of manufacturing SMEs is explained by factors of management, technology, finance, training and government support. An explanatory method within the quantitative approach and probability research design was applied. The study employed cluster, stratified and systematic random sampling techniques to take the sample populations. Before being distributed, the questionnaire has checked with Cronbach's alpha coefficient .932 which confirmed an excellent level of reliability. Out of the total 395 distributed 370 papers (93.7%) returned without missing. After the data collected and suitably presented, the descriptive statistics analysis method was employed using SPSS tool. Then, the Pearson Correlation analysis result has shown that there were statistically substantial positive relationships between the independent and the dependent factors. Technology has comparatively the highest significant and government support the lowest correlation coefficient. Similarly, coefficients of the remaining 3 factors have shown significant positive correlation. According to the assumptions of multilinear regression model analysis result, 71.3% of the variety within the dependent variable is explained by the independent factors. To be successful, entrepreneurs should primarily fix their business constraints and design business strategy. They also need to emphasis on the independent factors and incorporate with the operating model accordingly. Further, giving due attention to the vital process milestones within the process is a critical issue. Likewise, support providers need to make a paradigm shift from existed traditional style to the success path of jointly planning and implementing process.