This study was designed to assess Women Entrepreneurs’ Participation and Challenges that affect their performance in Micro and Small Enterprises. The study used both qualitative and quantitative research methods. Questionnaire was used to collect primary data from women entrepreneurs and structured interview were prepared for the experts of Job Creation Bureau in Gondar city administration. Both Stratified and purposive sampling technique was used to collect enough and adequate data from the sample. The Statistical Package for Social Sciences (SPSS) version 20 was the method used for data analysis A sample of 230 women entrepreneurs engaged in 5 sectors was taken for the study using stratified and purposive sampling. In the process of answering the basic questions, was designed in a closed ended and likert scales. After the data has been collected, it was analyzed using simple statistical techniques (tables and percentages) and descriptive statistics (mean and standard deviations).The results of the study indicates economic and entrepreneurial challenges that affect significantly for women entrepreneurs’, however cultural and social challenges had less affection based on the data. Based on the major findings, recommendations were forwarded to existing and potential entrepreneurs, MSEs, Micro finances and TVET educators. Keywords: Entrepreneurship, Women entrepreneurs, Micro and Small Enterprises, Performanc