Micro- and Small Enterprise (MSEs) are becoming important areas of emphasis for many developing countries in general and to Ethiopia in particular, primarily for their immense potential as a source of employment given that there are a many factors that affect their performance. In Ethiopia, the problems related to the growth of MSEs in different parts of the country in general, and in Gulele sub-city in particular face a high rate of failure because most MSEs operate along traditional lines in production and marketing. The purpose of this study was to analyze the factors that affect performance of women’s entrepreneurs’ in micro and small enterprises in the above mentioned Sub-City. The study used descriptive research design. The total sample size was 155 respondents. The data analysis was processed by IBM- SPSS statistical software version 20 and the data analysis was performed using descriptive statistics. The study found that women entrepreneur’s performances in MSEs were constrained by economic factors, social factors and institutional factors. In addition, sseverity rank test result indicated that economic factors are Sever than institutional and social followed by the legal & administrative and social factors. Therefore, financial institutions need to be set up revolving fund aimed at incubating and help grow business of women entrepreneurs in Addis Ababa so they will be economically empowered and able to contribute to the development of the country.rnKey words and phrases: Women Entrepreneurs, Micro & Small Enterprises, Performance