Micro and Small Enterprises (MSEs) plays an important role in economic growth, innovation, and competitiveness, which ultimately enhances enterprise performance. The main objective of this study is to investigate the effect of stakeholder orientation on the performance of manufacturing MSE in Bahir Dar city administration. The researcher used structured questionnaires and semi structured interview to collect primary data from the participants of the study. The study deployed descriptive and cross-sectional study design with quantitative and qualitative research approach. In order to accomplish the objective of the study, the reliability and validity of the instrument were assessed, followed by a Pearson correlation analysis and a multiple regression analysis to test the proposed hypotheses. The total populations of the study were 375 enterprises in the six sub-city of Bahir Dar city administration, 194 sample enterprises were selected for the study from the total population using simple random sampling technique. In the process of answering the basic survey questionnaire closed ended and five point Likert scale measuring instrument was used. Moreover, the researcher purposively selected top officials of TVED bureau as interviewees. The data was collected and analyzed using simple statistical techniques, descriptive statistics and inferential statistics. The result of the study indicates that, stakeholder orientation such as, customer orientation, competitor orientation, employee orientation, and owner-manager interest has a positive and significant effect over the performance of the MSE manufacturing sector. The study recommended that, Owners-managers of MSE manufacturing enterprise should constantly make an effort to satisfy the needs and wants of customers by delivering superior value, should understand the strengths, weaknesses, capabilities and strategies of competitors as well as being responsive to the actions of competitors, enterprise managers should invest time and resources in staff development and an owner-manager of the enterprise should accommodate the interests of all parties or owners with a financial interest in the business and formulate & implement profit making strategies.