The main objective of this study is to investigate the Contribution of Group-Based MSEsrn(construction, manufacturing and service enterprises) to employment creation and incomerngeneration in the Woreda 14 of kolfe keranio Sub city. Unemployment and low income are onernof the present situations in urban and cities of Ethiopia. The government of Ethiopia hasrnformulated a policy to mitigate the overwhelmed problem by fostering micro and smallrnenterprises.rnDuring the study, primary data were collected from 80 owners and 76 employees of MSEsâ€™. Inrnaddition, secondary data were collected from Woreda 14 MSEDO, Kolfe keranio Sub cityrnMSEDO, and Addis Ababa MSE Development Bureau. Both quantitative and qualitativernapproaches applied. The findings of the research shows, characteristics nature of respondentsrnand enterprise have great influential nature in income generation and employment creation. In thernsurveyed enterprises, an employment was created at annual average of minimum 5-7 andrnmaximum 17-23 in five the years. The annual average income of enterprise owners were at thernminimum ranging between 30,000-50,000Birr and maximum ranging between 141,001-200,000rnBirr. Also the annual average incomes of employee were minimum ranges of 8,000-13,000 Birrrnand maximum range 21,001-23,000Birr in five year. Research finding also shows lack ofrnworking place, insufficiency of finance or credit facility and etc. were the sever problem ofrnenterprise during startup and operation. Identifying enterprise need and problem during start-uprnand operation, encouraging educational status of operators, modernizing working procedure,rnpromoting micro finance institution, training about culture of saving, providing workingrnpremises in the appropriate place, and etc. should be encouraged