Women Entrepreneurship plays a prime role to develop the country economy rather than in improving the living. Women are generally perceived as home makers with improving the living standard of their family. This study was designed to show the contribution of small business sector in improving the living standard of women entrepreneurs in woldia city. It also addressed the factor and challenges of women entrepreneurs in to improvement their living standard. A sample of 96 women entrepreneurs engaged from five sectors was taken for the study using probable sampling of Slovin’s. The study also found that conflicting gender roles, social acceptability and network with outsiders were the major social factors that affect these entrepreneurs. In an attempt to providing answering to the basic research questions, a questionnaire that include all the necessary thing like profiles, challenge, factors and changes of women entrepreneurs. After the data has been collected, it was analyzed using statistical techniques and descriptive statistics. The results of the study indicate the personal characteristics of women entrepreneurs in Woldia and improvement of their performance. It also shows that lack of inputs, challenge of the process and the final improvement of women entrepreneurs output. Finally sums up all the points that are raised on the study, draw conclusion and render good recommendation on women entrepreneurs in woldia city.