The general objective of this study was to identify the challenges and opportunities of women owned business enterprises in Fasilo sub city of Bahir Dar city administration. The study employed qualitative approach and case study research design. The data were gathered from purposively selected interviewees, focus group discussants and key informants. Hence, three purposely selected key informants and eight in-depth interviewees have participated in the study. Besides, two focus group discussions were conducted. The data were analyzed using thematic data analysis techniques. The findings of the study revealed that, businesswomen faced various challenges such as finance, working premise, administrative/legal issue, work-family balancing, social-cultural, market access, information and personal attributes. As a result, these challenges hampered their work during the startup and while running their own business enterprises. In addition, these challenges influenced the growth and the success of business enterprises. On the other hand, the study found that, there were little opportunities for businesswomen as compared to the challenges they faced. The findings of the study showed that businesswomen gained significant opportunities at the beginning and end of their own business including availability of credit, support from spouse and friends, attending business skill trainings and building social bonds, psychological satisfaction and practicing leadership respectively. To cope with their challenges, they employed different mechanisms. These include credit from distributors (wholesalers), borrowing from families, discussing with house lessors, changing work place to warehouse, leasing obscure working place, forming groups, raising complaints, discussing with family members, and giving bonus for customers. Based on the findings of the study, it was concluded that businesswomen faced various challenges with little opportunities. Generally, the findings indicated that this has implications for the government, financial institutions and also women themselves; thus, they need to work together to address the challenges of women in the business world. Key words: challenge, opportunity, coping mechanism, businesswomen, business enterprise