This study aimed to investigate how Business Development Services impact the growth potential of Micro and Small Enterprises in Bahir Dar City Administration by considering BDS support provided by DOT Ethiopia, Bahir Dar BDS Center. The study employed a descriptive and explanatory research design. To address this and answer specific research questions. The research used a census technique to select all 200 MSE beneficiaries of Bahir Dar BDS Center of DOT Ethiopia who had taken full BDS within two years. Quantitative data were collected using five-point Likert-Scale questionnaires, and out of survey questionnaires 191 responses were properly filled. Then the responses were analyzed with the support of Statistical Package for Social Sciences (SPSS) version-20 software and summarized to relate the variables that were collected from these respondents. The study used both inferential (correlation and regression analysis) and descriptive (mean and standard deviation) methods. The descriptive analysis’s findings showed DOT Ethiopia Bahir Dar BDS center offered effective BDS training, access to the market and finance, and business coaching services to MSEs within the Bahir Dar City Administration. Pearson correlation results also revealed that all study predictors (access to finance, BDS training, business coaching services, and access to the market) are positively related to the growth potential of MSEs. The result of multiple linear regression analysis indicated that predictors (access to finance, BDS training, business coaching services, and access to the market) had a statistically significant effect on the growth potential of Micro and Small Enterprises in Bahir Dar City Administration at 5% of significant level and all these four predictors collectively explain 65.4 percent of the variation in growth of MSEs. Finally, the study recommended that stakeholders improve the current situation of access to finance for MSEs and should provide adequate market information, create market access, and fulfil adequate networks to improve the growth of MSEs’ performance in the study area.