The purpose of the study was to assess Practices and Challenges of Kaizen Implementation at EntotornPolytechnic Cluster College in the case of Woreda three enterprises Gulele Sub-City in Addis AbabarnCity Administration, and submitted. To address the objectives, case study research design wasrnemployed, and a mixed research methods (i. e. an approach of both quantitative and qualitative datarncollection methods) were used to collect data from 80 respondents through questionnaires and fromrn7 key informants using semi-structured interviews and cross-sectional data (i.e. data collected at onernpoint in time) collected from the primary sources, and secondary sources like review of assessmentrndocuments ranging from 2011 to 2014. The primary data was collected using semi-structuredrninterviews, questionnaires, and observations. Secondary data were also obtained from availablerndocuments at six SMEs and one TVET College in the study areas, and books, web-based internetrnsource, journals articles, pamphlets and other related materials. The quantitative data were analyzedrnthrough descriptive and inferential statistics with SPSS Version 20. The secondary data werernanalysed using thematic and content analyses. The findings of the research showed that there wasrnmoderately implemented kaizen strategy. The kaizen implementation indicated that there werernsuccess stories, but there had been challenges which emanated from various sources, like gaps inrnknowledge of executives, trainers and employees; their negative attitude towards the kaizenrnimplementation; their lack of knowledge and skills; gaps in available infrastructures and materialrnresources; and gaps in the capacity and capabilities of the management body. The majority of thernrespondents elicited that they did not take any training regarding the use, and implementation ofrnkaizen, there were no adequate administrative supports, feedbacks and encouragement for smoothrnoperation of Kaizen. The strategies suggested should be implemented to address those challenges inrnvarious socio-economic contexts at different levels. Therefore, the stakeholders should considerrnthose stories as good lessons and to effectively address the challenges identified. Thus, it isrnrecommended that in order to be successful government institutions and private enterprises shouldrnimplement kaizen/TQM as a strategy.rnKey words: Challenges, Cluster, Kaizen, Stakeholders, Strategy