The Primary objective of the present study is to assess and evaluate therngeneral performance and challenges of MSSAs in Wolkite and Boutajira cityrnadministrations. In order to meet objectives of the study, various books,rnjournals, policy and strategy documents and regulations were referred.rnStructured questionnaires were also distributed to 92 selected operators ofrnthe associations. Furthermore, 5 officials and experts from both Wolkite andrnBoutajira cities were interviewed and have provided important information.rnIn the study areas, Wolkite and Boutajira, the MSSEs development programrnhas been implemented since 2003. MSSAs have been established in the areasrnof construction, Metal and Wood works, urban agriculture, textile andrntailoring, municipality services and food processing and preparation. Variousrnsupport-Services including access to market, finance and credit, spaces,rntraining and counseling, machineries, equipments and inputs have beenrngiven to the MSSAs.rnAfter carefully looking in to and analyzing the available data, the study hasrnfound out that these supports have not been directed towards ensuringrnsustainability of the associations. The practice of service provision in the tworncities is not inline with the principles and objectives of the national strategy.rnThe associations exhibit high closure rate and dropout of members.rnTheyrncannot create long-term jobs. The participation of women in the association isrnalso found insignificant.rnThe study has also come up with the fact that the associations have beenrngiven priority in the market access from the public institutions. Even if thisrnpriority helps them to get market at the start-up stage, it makes them alsornentirely dependent on single market opportunity from the government thatrnlimited their over-all performance Because of this over-protection and dependence, the associations finally becomernpoliticized and they are not market-oriented entities.rnThe MSSAs also suffer from various challenges and constraints. Among them, thernfact that they face shortage of access to technical and vocational training, spaces,rnfinance, inputs and better machineries and equipments.rnThere is no anyrnnetworking among the associations. Members are also not clear about the legalrnforms of their associations.rnfound weak.rnThe expected linkage with TVET institutions is alsornFurthermore, the associations do not have necessary accountingrnrecords and do not prepare financial statements regularly so that analyzing theirrnfinancial progress is found difficult.rnMSSAs in order to play the expected role in socio-economic development of the tworncities, establishing large number of associations and providing them support alonernis not enough.rnAll support services must be designed in such away that ensurernsustainable growth of the associations and the attitudes of members should bernalso shaped through continuous awareness programs. As much as possible, theyrnshould be insulated from the direct political involvement. Furthermore, problemsrnrelated with the access to space, finance, inputs and other services should bernsettled