This study was designed to assess the entrepreneurial orientation of rural women engaged in Micrornand Small Enterprises sector. The study has examined the business operatorsâ€™ motivational factors,rnopportunity and challenges during start up and growth, awareness of Women entrepreneur thosernengaged in micro and small enterprises the policy involved in Micro and Small Enterprises inrnWalmara Woreda. Data on motivation, opportunity and challenges faced women and their awarenessrnon policy issues were collected from 53 business women by questionnaire and from 3 head of thernMSES by interview those were randomly chosen from MSE firms. Data has been collected throughrnquestionnaires, interview and observation. After the data has been collected, it was analyzed usingrnsimple statistical techniques (frequency and percentages). Women in this study were motivated tornstart their own business by both pull and push factors, such as the need for independence, the desirernto be self-employed, support their family and self-achievement. They are currently facing obstacles,rnsuch as lack of working space, lack of working capital and lack of credit facilities. Estimation resultsrnof the descriptive analysis indicated that having prior business experience together with goodrneducational background led to acquaintance with entrepreneurial orientation that can be used tornenhance radical innovation, pro-activeness and risk taking behavior in micro and small enterprises. Itrnis hoped that the findings of this study discussed here can benefit the business women, otherrnresearchers and important parties in the field of entrepreneurship or other support programmes. Thernstudy concludes that risk taking, innovation and pro-activeness have relationship with womenrnentrepreneurship orientation in the study area. Finally this study also concludes that EO is arnmultidimensional activities and that these dimensions vary independently. Based on the majorrnfindings, these recommendations were forwarded: there should be capacity building for womenrnentrepreneur; there should be family support for them and building awareness of womenrnentrepreneurs.