Asefa, Meseret (PhD)Negash, Dagne2018-08-102023-11-052018-08-102023-11-052014-06http://etd.aau.edu.et/handle/123456789/11540This study was designed to assess the role of Functional Adult Literacy (FAL) to run a successful Micro and Small Enterprise (MSE) or Income Generation Activities (IGA). It also addressed the characteristics of functionally literate and Functionally Illiterate micro business operators in establishing, managing and scaling-up of women entrepreneurs in MSEs and their IGA and the supports they acquire from FAL and MSE sector. A sample of 54 micro business/IGA operators, 12 group IGA leaders, 16 FAL Facilitators and 24 MSE officers were taken for the study using random sampling. In the process of answering the basic questions, a questionnaire that include characteristics of respondents, the role of FAL to run micro business, linkage and collaboration among FAL and MSE office, challenges related to FAL program implementation was designed in a closed ended and open ended questions. Moreover, interviews were held with top officials of MSEs, FAL facilitation office. After the data has been collected, it was analyzed using simple statistical techniques (Frequency and percentages).The results of the study indicate characteristics of micro business operators and the role of functional adult literacy in their micro business activity. It also shows that integrating Functional Adult Literacy programme with different livelihood program has great contribution it improve the life of needy adults. The results of the study also indicate weak collaboration among FAL facilitation office and MSE office, shortage of budget, shortage of manpower and inaccessibility of materials as among the major challenges. Moreover, lack of interest among FAL facilitators and FAL program participants due to different factors like; lack of incentive and absence of motivation from facilitators side and learners un friendly program delivery in place, time, approach and need focus from, learners side are also the major challenge. Finally, based on the major findings, recommendations were forwarded for concerned bodies such as existing and potential micro business operators, group IGA leaders MSE Offices, and FAL program facilitation officeenCase of Gulele Sub-City Selected WoredasThesis