The role of Micro and Small Enterprises (MSEs) in creating employment and income generation has been recognized by the government and various measures have been taken to promote micro-and small-scale enterprises in Ethiopia. In spite of efforts exerted so far, the growth of micro and small-scale enterprises is still poor. This study was aimed to examine factors affecting the growth of micro and small enterprises using a survey of 310 respondents from Bahir Dar city. Descriptive statistics were used to summarize the performance of MSEs growth and describe characteristics of MSEs in Bahir Dar city. OLS econometric regression model was used to analyze the determinants that influence the growth of MSEs in Bahir Dar city. The findings of the study showed that the education level of owners, business plan, training, teamwork spirit, types of business sector, access to working premises, access to credit and access to an adequate market found to be significantly affecting the growth of MSEs. These results highlight that the growth of MSEs in the study area are highly influenced by the specified institutional constraints. Thus, the importance of access of various productive resources, assets and institutional support & linkage for the sector is worth considering for policy makers and other stakeholders as a positive knock on effect for growth of MSEs. Key Words: Micro and Small Enterprises Growth, Bahir Dar City, Ordinary List Square Analysis (OLS)