The major objective of this study was to investigate the challenges facing for TVET graduate trainees to create their own business in Wag Himra Zone. Nowadays, most of the TVET graduate trainees are not run their own business by their field of study and they are not competitive to the outside industry. They are government employment oriented and jobless rather than self-employment. This condition also causes poverty in the nation. In order to achieve the objective of the study totally 204 sample respondents were involved in this research. These are 100 graduate trainees, 45 trainers, 9 heads from Amhara credit and saving institution, from technical and vocational enterprise development office, from TVET colleges and 42 from trainees’ families. In order to collect the data both simple random sampling and availability sampling technique were employed. Both qualitative and quantitative data were analyzed with descriptive and percentage instruments respectively. As the findings of the study shows graduate trainees have no clear entrepreneur awareness, there is Lack of selling and working space, shortage of training materials and shortage of starting capital to create their own business. These were concluding that the challenges faced for TVET graduate trainees’ would have negative impact on their business creation. Hence it is recommended that, all colleges in Wag Himra Zone and the concerned stakeholders should focus on the entrepreneurship training and cooperative training. The Amhara credit and saving institution should also simplify their loaning criteria and reduce their interest rare to the graduate trainees’. All three wordas’ technical and vocational enterprise development offices also allocate and facilitate enough working and selling place to the graduate trainees’ before they complete the training. As much as possible Amhara technical and vocational enterprise development bureau also should be allocating enough budgets to colleges.