The purpose of this study was to assess the challenges of TVET Colleges in Addis Ababa cityrnadministration while providing technical training for SMEs development. The study has beenrnconducted in two governmental TVET Colleges. The trainees, trainers, College managementrnbodies, and bureau TVET experts were the main sources of data for the study. Stratifiedrnrandom sampling approach was employed in selecting the trainers and trainees. Questionnaires,rninterviews, observation check list, focus group discussion, and document analysis werernthe instruments used for the collection of data. The data obtained through questionnaires werernanalyzed using statistical instruments like percentage and weight mean values. The data arernanalyzed and interpreted qualitatively as well as quantitatively.rnThe results obtained from the study suggest that, in the selected TVET Colleges, the availabilityrnand capability of class rooms; workshop and libraries are not satisfactory. Raw materials and inputsrnrequired for the training purpose are not available in the target colleges. Lack of budget andrncommitment of concerned bodies are also major challenges observed in TVET colleges which in turnrncontributed for the challenge in providing effective training to TVET trainees and SMEs. Therncolleges are not well organized internally. At the same time, the colleges are not fully working tornimprove potential for the industry and are not also appropriately using industries to deliver practicalrntraining to trainees. Short term training is not that much encouraging. Similarly, skills given in thernTVET colleges are not practically from the need of industry.rnFinally, based on the findings and conclusions, the following points were recommended tornaddress the existing challenges of the selected TVET colleges in the City administration.. Staffrndevelopment in the Colleges; internally organized, Necessary facilities should also be fulfilled. Inrnaddition, tracery studies should be carried out before providing training, and trainees havernto be encouraged in self-employment. Besides strengthening the labor market informationrnsystem; establishing and enhancing technology transfer department; enhancing supervisoryrnand professional support; offering opportunities for further training for trainers.