The purpose of the study was to assess factors affecting the implementation of industrialextension services provided to MSEs by TVET institutions and its challenges andrnopportunities taking enterprises in Yeka sub-city, Addis Ababa. Descriptive research designrnwas employed as the purpose of the study was to assess the current status of IESrnimplementation. The sampling method used in this study was simple random samplingrntechnique. To collect data from 60 respondents in cross-sectional data (data collected at onernpoint in time) collected from the primary sources, and secondary sources like review ofrnassessment documents. In the process of answering the basic questions, a questionnaire thatrnincluded demographic profiles of the enterprises, factors that affect the industrialrnextension services in MSEs and the challenges they face in technical trainings wererndesigned in a closed/open ended and likert scales. After the data has been collected, itrnwas analyzed using descriptive statistical techniques such as percentages, frequency, andrnmean. It shows that lack of their own land (shade area) to run their business, financialrnaccess given by micro finances or other lending institutions, inadequate access tornbusiness training, firm competition in the market place, access to technology and accessrnto raw materials were the key economic factors that affect the industrial extension servicesrnin MSEs. The administrative bodies are required to create an enabling environment forrnthe growth and development of MSEs, but this study found that lack of market access,rnhigh amount of tax, insufficient training, lack of business skill for transaction, interest raterncharged, lack of understanding the manipulating of new technologies, poor infrastructure ofrnthe land of the country(land escape), quality product, integration between the trainer andrntrainee, prevalence of advertizing their work, lack of managerial skill and all legal andrnregulatory environments were the main factors that affect industrial extension services.