In Ethiopia as in many other developing countries, micro and small enterprises arernextensively expanding and absorbing a wide urban labor force. In the face of a rapidlyrngrowing labor force where public sector hiring slowed and the growth of the largernmodern private sector has relatively Stagnated the role of the small as wellas micoenterprises in employment creation is in di spensable. Despite the fact that smallrnenterpri ses have been recognized as a major contemporary source of employment andrnincome in growing number of developing countries, yet relatively little is known aboutrnopportunities and constraints in these enterprises. This research, therefore, is very muchrnsignificant in identifying the opportunities and constraints that hinder MSEs.rnThe cottage and handicraft industries such as the weaving sector can be easily promotedrnand lead to opening to overseas market through the export of hand made cloth products.rnThe study has concentrated on weaving sector that is not given enough attention. In orderrnto achieve the objective of the study, a questionnaire survey covering a total of 200rnweaving operators (households) were conducted on three purposively selected Kebelesrnfrom Gulele Kifle Ketema of Addis Ababa: Kebele 17,18, and 21. The result of thernresearch in general showed that the weaving enterprises comprise operators that acquirernskills informally and are mostly involved in manual work. Supports for entry in thernsector, transfer of information, skills, know-how and financial assistance depend on thernsocial network of friendship and kinship rather than on formal institutions. The surveyrnalso indicates that weaving is male dominated activity.rnThe findings also revealed that the sector has immense opportunities for its survival andrngrowth, out of which the increasing demand of domestic market, material base, thernpreferential access of international markets and better communication facilities are somernof them. Hence, taking advantage from these opportunities and thereby eliminatingconstrains should be the priority area for the concerned bodies. The survey also indicatedrnthat weaving enterpri se problems are many and varied, and they require comprehensivernsolutions. However, this does not mean that all problems pose the same intensity andrnpriority. In attempting to prioritize problems shortage of start up capital, limited marketrnand insufficient working premises are found to be the most press ing and leadingrnproblems fac ing the sub-sector in study area. Apart from this shortage of raw materials,rnlack of knowledge and skill, health problems, competition from the modernrnmanufacturing industry (textiles firms) and lack of modern weaving tool problemsrnconstitute the other problem areas. In general the paper has attempted to identify theopportumhes and constra1l1ts tor survival and growth oA he sector, by 100king indiverse characteri sti cs of weaving enterpri ses.to