The study includes almost all sectors that identified by Goba town administration micro and small enterprises Office by taking 240 sample size out of 641 micro and small enterprises. Therefore the study found that major internal and external determinants of Micro and small enterprises growth and examine the linkage between the number employee and micro and small enterprise growth by taking the change in capital over the life of the firm. The multiple linear regression models were used to identify the most affecting variables growth of MSEs. Before estimating the chance of the event using multiple regression model, goodness of fit of the model and multi-co linearity diagnoses were made. After the regression of the model found that there is strong linkage between the capital and micro and small enterprise growth , from internal determinants educational level of owner was positively significant factor affecting growth of MSEs at 1% level of significance, initial capital had significant and positively effect on growth of MSEs at 5% significance level, current capital had significant and positively effect on growth of MSEs at1% level of significance as well as from external determinants of growth of MSEs access to financial service and the growth of MSEs was positively significant at 1% confidence level, Work promise had significant and positively affects the growth of MSE at 5% significant level, government Policy was positively significant factor affecting growth of MSEs at 1% level of significance Since study result demonstrated, both internal and external determinants determine the growth of MSEs Personal commitment of the owners and government support are exert.4