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Abstract This study investigates the sustainable development status of micro and small enterprises (MSEs) in Debre Berhan town in five major manufacturing sub‐sectors (textile and garment, agro‐processing, woodwork, food processing and beverage and metal works and engineering). The sustainable development status of the selected MSEs was evaluated using 16 indicators for the three pillars of sustainable development (economic, social and environmental). The results showed that economic sustainability was at a ‘low’ level, while social and environmental sustainability and the aggregate index were at ‘moderate’ levels. Therefore, integrated support is required to overcome the identified challenges MSEs face to achieve sustainable development.
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