This study in vesti gates the soc io-economic impacts and determinants (constraints) of MSEsrnsimultaneously using 100 samples of MSEs (80 of them so le propri etorship and 20 of th em cooperatives)rnin Wolkite town (the case study area of this paper), The majority of firms in thernsun'eyed town (Wolkite town) are MSE and large numbers of the res idents made their I il'el ihoodrnthrough micro and small enterpri se, The fi nding of the study sholl's MSEs hale socio-economicrnimpacts such as employment opportunity. income generation and some other liwlihood bene fit s.rnHOIIÂ·ever. there are some constraints or determinants that can affect fo r the groll th of VISEs suchrnas initial size and age of the firm. lo rmal ity of the bus iness. human cap ital(prel' ious e~pe ricn ce.rneducation level and business training). demographic factors (ge nder. martial status and age of' thernollner), access to finance, the type of se ctor and location of the firm . Further more. the ana lys isrnof the study also sholvs that from these determinants age of the finn. business formality. prev iousrne~pe ri e n ce . business training. demographic factor(ma le and married oll'ner).i nforma l linancialrnaccess. the type of sec tor(trade and manufactur ing) and location of the I'irm(traditional marketrnlocation) have positive effect for the gro1h of MSEs, On the contrary. initial size of the firm.rnlormal financial access. informality of the business. demographic factor( female and unmarriedrnollner)and the tl'jJe of secto r(trade) halT nega ti ve effect for the grollÂ·th of !SEs. Sincc MSErndiffers based on sec tor and oll'l1ership type. their soc io-economic impact and the constraint thel'rndo face also difkrs accordingly, Policies and support programme that promotes lor the growth ofrn ISEs therefo re should consider these aspec ts of MSEs difference s.rnThe paper compr ised of fi l'e sections. the fi rst sec tion deals lI'ith an introduction. the secondrns