There are two Mses Textile enterprises (Aster textile enterprise and F. decor textile enterprise) in Dessie town which have weaving mills. They are facing the challenges to improving their productivity and meet the competitiveness in the market. MSEs Serves as a tool for reducing unemployment and poverty if they are sustainably mobilized and supported by the government and other concerned stakeholders. Therefore research was conducted to identify the factors that affect the productivity of Textile enterprises and find out the possible solutions for productivity improvement. The purpose of this study is to investigate factors affecting productivity of textile enterprises in Dessie town. The research is mainly focused on man power, raw materials used, machine capacity, maintenance, and energy consumption of weaving mills. In this study, the following factors are affecting productivity of the enterprises. I.e. training time of the operators is very short (30-45 days), improper skilled man power was used as operators and it was difficult to produce quality product or achieving productivity. Maintenance schedules are not followed unless the machine gets stopped, single machine is operated by one operator which gave lot of time wastage in working time, proper ambient conditions are not maintained which resulted in continuous breakages. Based on the study the researcher strongly recommends to provide operators skill–oriented training with professional trainer so that they can develop confidence in the production process. The operators may be provided machinery maintenance training to attend minor problems in the machines so that idle time can be reduced.