MSEs play the role of mobilizing fragmented as well as small-sizedrncapital of individuals and channel it to the pool of investment.rnThey utilize and adequately mobilize local resources. An effectivernmobilization of resources also leads to the creation of amplernemployment opportunity for skilled and unskilled work forces.rnMSEs satisfy the market demand of the poor as they offerrnrelatively cheaper commodities to the market. Despite this fact, thernMSEs are characterized by a range of problems that is hamperingrntheir day to day operation and the overall development of thernsector. The objective of this study is to assess the opportunitiesrnand challenges of MSEs in Humera town. That is, it exploresrnemployment and income creation role, the opportunities that arernutilized by the enterprises and the problems that inhibit the growthrnof MSEs. The findings indicated that, the activity of supportingrninstitutions in terms of training, credit service arrangement, andrnavailing work place were found to be very poor. The most crucialrnand leading constraints revealed by the study are infrastructuralrnproblems (electric power, water shortage and mobile telephonernnetwork), shortage of working capital, lack of work premise, andrninput price instability, in that order. Arranging training programsrn(including consultancy and supervIsIOn services), creatingrnconducive link between MSEs and financial institutions, creaternbusiness clusters (so as to manage the infrastructure, workrnpremise and collateral problems) are indicated as better solutions.