This thesis presents the contributions and effects of small, medium and micro enterprisern(SMME) construction contractors on the road construction projects of Ethiopia. The mainrnobjective of this thesis is therefore to present assessment report regarding the contributions andrneffects of the SMME construction contractors on road construction, maintenance improvementsrnand their operational challenges in Ethiopia.rnThe study had developed through literature survey and in addition to this, questionnaire basedrnstudies were made to provide an overview of the various contributions and effects of small,rnmedium and micro enterprises on road construction projects of Ethiopia as well as theirrnchallenges. Interviews were also conducted with various parties which have direct involvementrnin construction activities to strengthen the ideas of the subject matter. Extensive literature reviewrnand field surveys are conducted on 75 respondents. The field survey used the questionnairerninstrument and random sampling. The critical findings from the literature were that there arernhuge contributions and effects as well as problems in the operations of SMMEs on infrastructurerndevelopment projects.rnAfter the field survey, the analysis result revealed that small, medium and micro enterprisesrn(SMME’s) seen as an essential input to the road network development and maintenance work ofrnthe road construction sector and are springboard for growth, job creation and social progress.rnThe research also confirmed operational challenges as lack of finance, limited skills inrnconstruction management, and prevalence of unethical conduct amongst some of thernstakeholders which are obstacles to their maximum potential contributions and theirrndevelopment. The findings also make an invaluable contribution to the search for solutions to thernexisting problems faced by SMME contractors in Ethiopia and provide insight for furtherrnresearch in institutional weaknesses and policy issues regarding the problems. Thernrecommendations include the developing of training programmes in construction and businessrnmanagement, introduction of sector specific financing programmes and the provision of anrnappropriate regulatory and legislative framework. Conclusively, further investigations, researchrnworks and discussion forums are advisable by all stakeholders and the concerned higherrngovernment officials in order to give tangible solution to their challenges.