The main purpose of the study was to examine the challenges and opportunities ofrncooperative entrepreneurs of TVET graduates. To this end, an attempt was made to lookrninto the major factors affecting entrepreneurial development in the TVET institutes and inrncooperative business enterprises such as partnership between TVET institutions andrnenterprises, labor market information system, apprenticeship training, financial facilities,rnpolicy, business development services and management of the enterprises. A descriptivernsurvey method was used to identifY the major problems encountered in the success ofrncooperative owned enterprises in 20 cooperative societies found in 5 different sub-citiesrnof Addis Ababa. The subjects of the study were J 00 cooperative entrepreneurs of TVETrngraduates, 3 TVET vice principals, 3 vocational counselors, a deputy head of trade andrnindustrial development bureau and 3 heads of trade and industrial development office ofrnthe sub cities. Accordingly, the respondents sampling was carried out through stratifiedrnand purposive sampling techniques. The data for the study was obtained throughrnquestionnaires, interviews, observations and documents, and analyzed using SPSSrnsoftware. percentages and ji-equency count methods. The results of the study revealedrnthat TVET institutions were unable to establish a network of cooperative relationshiprnwith enterprises, apprenticeship offering organizations were lillie prepared forrncooperation in the apprenticeship training for efforts made to elicit their activernpartiCipation, and TVET institutions do not have institutional set up required by laborrnmarket information systems. Moreover, the outcome of the study showed that lack ofrn(financial facili ties, technical, operational and management), government intelferencernand absence of cooperative promotion policy were limitations recognized to address therndevelopment of cooperative enterprises. Therefore, it is recommended that creatingrnawareness through information campaign for further deepening both the concept ofrnpartnership and the culture of apprenticeship training, TVET institutions need tornestablish labor market information system. Similarly, great emphasis should be placed onrnIhe pOlential contribution of cooperative entrepreneurs in creating wide employmentrnopportunities and providing a bridge to the formal sector for people currently working inrnIhe informal sector, rehabilitating sick units and identifY higher potential businessrnopportunity.