Abstract:
The study undertakes the Sustainability of small and medium scale enterprise through primary
data. This study contributes indispensable economic roles and taken as the engine of economic
diversification and poverty alleviation. It identifies the relevant factors affecting SME enable
them to maintain their business in spite of challenges in the business world. In Ethiopia, the
Government has been encouraging SMEs by designing and implementing Small and Medium En terprises development and the number of SMEs in the country is steadily growing, but most
SMEs are hibernating from growing and striving to pass from lower stage to higher stage due to
many underlying factors. This study used quantitative data that collected through stratified ran dom sampling method. The collected data was analyzed by appropriate descriptive statistics and
multinomial logistic regression model through SPSS V.20. among The Dependent Variable, the
age of Enterprise in the business was used as proxy or the Sustainability index of SME. The find ings show that the SMEs in manufacturing sector have more probability of sustainability com pared to trading, service and construction sectors. The findings further indicate SMEs that have
more financial related opportunity have more probability of sustainability in the long run. The
achievement of higher education is unrelated with the Sustainability of SME, because it may
provide more options to work opportunity. For further analysis, researchers may recommend
other indicators of the sustainability by using larger samples, and Advanced test of statistics jus tify findings of the factors affecting sustainability of SMEs in the case of Harari town
