Burayu Town, the rapid urban population growth over and above the development of socioeconomicrnservices and institutions are the main cause for urban unemployment. It is the townrntli . located at 15 k.ms away, Fom Addis Ababa to the west direction. The town has six kebelesrn~ 14,426 populations; and served as a satellite city to Addis Ababa. the capital city ofrnEthiopia.rnFor the attainability of the desired objectives, both primary and secondmy source of data arernemployed. A quantitative method is utilized and the data are collected through survey byrnemploying questionnaire as well as key informant interviews, group discussions and it isrnanalyzed using descriptive statistics. From the existing 550 total operators, 85 were selected inrnsimple random sampling and took part in fi lling out the questionnaires. The interviewed andrngroup discussion participants were selected in purposive sampling.rnThe findings of the study indicate that MSEs (Micro and Small Enterprises) of cobblestone worksrnare a good meditation for urban unemployment problems in income earning and povertyrnreduction. It has brought significant socioeconomic benefits. in improving the operators ' income,rncreate wealth, enabling them to save their income and improving social values of thernenvironment. However, the works have faced different challenges in financing, administrating,rntransporting raw materials and safety in the work area. To achieve fitll employment, the cityrngovernment has to widen other investment opportunities, realize work area safety, and co-workrnwith the community and other voluntmy associations such as Community Based Organizationsrn(CBOs) and the Non-Governmental Organizations (NGOs) to raise funds in the local arearndevelopment programs.rnKey words: Burayu town, urban problems, unemployment, urban poverty, MSE operators,rncobblestone work.