This thesis stand with the aim of exploring the challenges of the return migrants in their business engagement while running their business in Hosanna town after they come back from the Republic of South Africa. In order to achieve the study, the mixed research approach designed was employed. Semi-structured questionnaires and focus group discussions were used to identify the challenges of return migrants in their business engagement. Interview was also administered to gather the necessary information from the main concerned governmental bodies. These participants selected with purposive sampling of the concerned governmental bodies and snow-ball sampling techniques the return migrants obtained as a result of the numbers of returnees are not known in figure. Return migrants engage in business activities like cafes, restaurants, hotels, supper-markets, logs and transportation services. When they run these businesses, the main challenges that they face include extended bureaucracy, exaggerated taxation system, lack of coordination among the main concerned governmental bodies and lack of facilities as the participants of the study mentioned. The governmental bodies provide various trainings for raising awareness on policy and strategies of government regarding to return migrants, organizing of returnees with the strategy of small and micro enterprises and working in cooperation with these governmental bodies.rnKey words: return migrants, business challenges, Hosanna, Ethiopia, Republic of South Africa