Tefere Mekonnen (PhD)Solomon Workneh2025-01-012025-01-012024-07-01https://etd.aau.edu.et/handle/123456789/4072The country's economic development greatly benefits from the cottage industry. These days, there are more and more cottage industries operating in this field. Therefore, the primary goal of this research is to investigate the opportunities and challenges associated with the cottage business in two rural kebeles and one town in Awi Zone, Banja Worda. The potential and difficulties faced by the cottage industry were examined using both quantitative and qualitative methods. In a cross-sectional design, data was challenges clollected from 208 respondents. since there was no requirement for a sample. In the light of the findings, it is recommended that financial institutions, such as banks and microfinance institutions should create alternative collateral systems that include the financial needs of their businesses as well as the economic situation of the cottage industry. The government has the authority to manage the external elements, such as infrastructure and market access that are stated as dimensions influencing the performance of cottage industry businesses. As such, the government should take the lead infrastructure provision, facilitating financial access, creating market linkages and fostering education to bolstering the cottage industries and enhancing the livelihoods of those involved in the sector. Keywords: Cottage industry, financial access, market linkage, infrastructure, Awi Zoneen-USCottage industryfinancial accessmarket linkageinfrastructureAwi ZoneThesis