The objective of this research is to assess the contribution of MSEs to sustainable developmentrntaking the case of manufacturing MSEs in Addis Ababa, Ethiopia. The main research questionrnwas to find the socio-economic and environmental impact of MSEs and the drivers and barriersrnfor sustainable business practices. An exploratory research method was used to address thernresearch questions. The research was based on review of relevant literatures and mixed methodrnresearch methodology was employed where data was collected from entrepreneurs andrnemployees of the enterprises and key informant interview was conducted with relevant officials.rnGRI sustainability reporting framework was used to provide the conceptual framework. Thisrnstudy reveals that the enterprises have created job opportunity for local dwellers and are playingrnconsiderable role in the interactions in the local markets through the use of local raw materialsrnand serving the local customers needs. However the firms contribution to sustainablerndevelopment are restrained by many factors including weak economic performance of firms,rnbusiness constraints as marketing problems, input constraints and finance constraints, nonrneffective human capital management, weak environment protection measures adopted by thernMSEs and lack of relevant knowledge. Though the MSEs entrepreneurs have positive attitude onrnthe benefits from sustainable business practices as cost reduction, profit maximization, attractionrnof employees and customers, reputation building and comply to legislation, the drivers are notrnhighly influential for the enterprises due to the barriers that strongly hinder the enterprises tornimplement socially and environmentally responsible business practices.rnKey terms: Sustainable Development; MSE; Manufacturing Enterprises; Triple Bottom Line;rnNatural Environment; Marketing; Ethiopia