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Micro-enterprises, owing to their characteristics of using more labor intensive technologies, indigenous raw materials, among others are considered as the turn key for the over all economic development of a country. However, the issue of micro-enterprises development as an integral part of the local economic development is a recent area of innovation here in Ethiopia. Though there are some opportunities for the betterment of this sector, there are still challenges which inhibit the potential role they can play. This study, principally, tries to spotlight the determinants of the growth and performance of MEs in Debre Markos town,Ethiopia.