The main objective of this paper is to study the most important factors for the growth of smallscalernenterprises and aims at analyzing the characteristics and the determinants of growth andrndevelopment of enterprises and their implications for policy and intervention design The studyrnwas based on a survey of 182 entrepreneurs who were randomly selectedfrom Addis Ababa. Inrnaddition, discussions and key informant interviews were also conducted with trade bureaurnofficials, association leaders, and staffFom the enterprises to get an in-depth insight on thosernissues that are not adequately addressed in lhe survey method. Secondary data sources such asrnCSA reports; various documents and reports produced by the supervising agency were alsornreviewed. The study brought together ideas from owners of enterprises, implementing agency,rngovernment officials, and other stakeholders. Both statistical methods and qualitative analysisrnwere employed in the study as methodological tools.rnThe study, thus, analyses the determinants of growth in small-scale manufacturing enterprisesrnin Addis Ababa. The findings in the study indicate that various entrepreneurial characteristicsrndeveloped by a learning process that takes place through aging; experience and a prior recordrnof enterprising activity enhance the chances of business success. It also found that enterprisesrnthat are demand driven, who find their own market niche and who have high propensity torndelegate tasks tend to grow. However, Macroeconomic variables continue to playa majorrnrestraining role for entrepreneurship and entelprise growth.rnTherefore, an important lesson drawn Fom this study is that both institutional and humanrncapital embodied in the entreprelieur have significant ejfect on growth of small scalernmanufacturing enterprises, and adequate emphasis has to be given to the promotion of thernsector, and ensure the role played by small scale production in economic developmentrnIt is the writer 's belief that this study will improve our understanding of the existing andrnpotential problems, constraints, and growth opportunities of small-scale enterprises in Addis Ababa