Women entrepreneur plays a decisive role in the economic and social development of the country. In spite of their position still, they are facing a range of challenges like lack of access to capital, inadequate managerial and marketing skills and their contribution is not yet recognized. Thus, this study aimed to assess the challenges and prospects of women's entrepreneur in Hawassa city. A graphic research design was conducted. Simple random sampling was used to select 42 women out of the total population. Both primary and secondary source of data was used. Primary data was collected using a scheduled questionnaire and structured interview. Regular supervision and follow up was made. The SPSS software version 20 was used to code, compile, and analyze data. Multivariate analysis was used to see the effect of the independent variable on the outcome variable. The finding of the study found that poor managerial and marketing skills, inexperience, and insufficient business related training were among the significant hampers of women entrepreneurs in Hawassa city. The result of the study also showed that educational background, market problem, lack of premises and lack of collateral were strongly associated with women entrepreneur at a p-value less than 0.05. Women who have collateral to access credit were about four times more likely to participate in business than women who do not have collateral (AOR 3.914 (95% CI ((0.370-41.394). Thus, it is recommended that the government should work to strengthen women entrepreneur via providing various skills training, finance support, business-oriented information and advising services.
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