Poverty alleviation is top on agenda of most d eve loping countries torndignify their citizens with decent living conditions. Therefore, this studyrnassessed the contribution of skills training and micro-financing servicesrnprovided b y Bahir Dar town Administration Micro a nd Small ScalernEnterprises and Industry promotion office and other Micro FinancernInstitut ions (MFIs) in empowering and improving the living conditions ofrns mall-scale women entre pren e urs in B a hir Dar town using bothrnquantitative a nd qualitative research designs and methods to generaternpertinent data from primary and secondary sources. It also used multistagernrandom sampling techniques that involve systematic sampling withrnrandom start to s elect sample size of 100 small-scale womenrnentrepre n eurs from 890-target popula tion. The study findings indicaternthat group based MSEs in the study area have go t various types support rnfrom Ba hir Da r town Administration Micro and Sma ll Scale Enterprisesrna nd Industry promotion office (BDAMSEIO) and Mi cro financernInstitutions (MFI s ). However , som e group-based MSEs are c onfrontedrnwith m a rKet premises and lack of materials. When it comes to therninfluence of skills training and micro financing, even if it has a littlernpositive- effect o n empowering and improving t h e living condition of sm a ll ,rnscale women e n tr epr eneurs, t h e contribution is not significant. But,rnrelatively micro financing h as b etter contribution on empowering a ndrnimproving li ving condition of women entrepreneurs. The s tudyrnunderscores the need to alleviate pove r ty at household level; skillsrntraining which integrat e s lite racy program in to Income Generatingrnactivities (I GAs) packaged with reproductive hea lth (RH) progra m takingrnin to account the socio-demographic and economic characte ristics of thernhouse holds in which potential women reside a nd t h eir compositions thatrncan be implemented in integrated, co-coordinated a nd in a n etworkedrnmanner with micro financing b y creating favorable environment throughrna dvocacy.