The study examined the role of micro financing programmers and the success of small businessesrnin urban Ethiopia considering the case of the POCSSBO micro financing programmers in AddisrnAbaba. The investigation is based on descriptive analysis and identification of the determinantsrnof the probability of success in beneficiaries' businesses using the legit model. The data used forrnthe study is primary and cross-sectional, collected with the help of structured questionnairernbetween March and April 2000, from a sample of 236 beneficiaries who benefited fromrnPOCSSBO micro financing scheme in Addis Ababa.rnThe results indicate that the POCSSBO micro financing scheme contributed positively tornemployment creation and income generation which paves the way for the development of micrornenterprises. Through the expansion of self employment opportunities to the beneficiaries of thernprogrammers the credit scheme played a key role in raising the beneficiaries' income.rnThe maximum likelihood estimation result of the legit model reveals the existence of some factorsrnthat significantly influence the probability of success in beneficiaries' businesses. The resultsrnindicate that the initial loan size, sufficiency of the loan for intended purposes, training given tornborrowers before the loan, convenience of business area, business experience before the loanrnand high school level education of borrowers are important determinants of the probability ofrnsuccess in beneficiaries' businesses.rnOf these determinant factors of the probability of success in beneficiaries' businesses, sufficiencyrnof the loan for intended purposes, training given to borrowers before the loan, convenience ofrnbusiness area, business experience before the loan and high school level education of borrowersrnare found to be enhancing factors of the probability of success in beneficiaries' businesses. Onrnthe contrary, the initial loan size is found to be inhibiting factor of the probability of success inrnbeneficiaries' businesses. The project office should take into consideration these enhancing andrninhibiting factors of the probability of success in beneficiaries' businesses in designing improvedrnmicro financing programmers in the future.