The main purpose of the study was to find out the possible solutions for the various challenges faced by women entrepreneurs in garment micro and small enterprises in Bahir Dar City, and it was guided by seven research questions. The population for this study was all the women garment entrepreneurs in Bahir Dar. This was small enough to manage the study properly. Census approach was used in order to incorporate the whole population in the study. The study was a descriptive survey approaches which is used to gather data that describe events and then organize, tabulate, depict, and describe the data. The data for the study were obtained through questionnaire, observation checklist, unstructured interview. The documents were survey and analyzed using Microsoft Excel to obtain frequency tables, percentages, pie chart and bar graphs. The following results were obtained among others: difficulties to obtain loans, lack of managerial skills, difficulties in choosing a location for an enterprise, problems in accessing market place and lack of encouragement to activate women’s entrepreneurial skills. Based on these findings, it was recommended among others that conferences should be organized in favor of women entrepreneurs to help individuals in the society to know that these groups of individuals are needed in the society if the economy is to be moved forward. Key words: MSE, challenges, entrepreneurs, garment, women, enterprises, affecting.