Services sector in India has been growing very fast: its contribution to GDP is nearly 60 per cent, and its contribution to employment generation is substantial. The Micro, Small and Medium Enterprises Development Act, 2006 has divided the enterprises based on investment in machinery or equipment. Micro enterprises are further divided into manufacturing and service enterprises. Micro service enterprises have investment limit up to Rs. 10 lakh on equipment. Hair-dressing enterprise comes under the personal services category. These enterprises use certain equipment. They need investment on equipment which is usually not more than Rs. 10 lakh. Hence, they can be considered as micro service enterprises. The present study attempts to find out, with the help of empirical data, the investment made in hair-dressing saloons, working capital requirements, nature of employment, sources of capital, socio-economic background of the entrepreneurs, performance and growth of the enterprise and the problems faced. Based on the findings of the study, an attempt is made to suggest some policy measures to solve the problems faced by the entrepreneurs. Keywords: Hair-dressing saloon, enterprise, micro enterprise. Introduction Services sector makes substantial contribution to Indian economy. Its contribution to GDP, employment generation, exports, and FDI inflows and economic growth is very significant. The share of services sector in GDP was 57 per cent in 2013-14; SERVICE SECTOR MSES: HAIR-DRESSING SALOONS, DAVANGERE ABSTRACT March 2017 * Dr. G.T. Govindappa is Professor and Chairman, Department of Commerce, Davangere University, Shivagangothri, Davanagere-577002, Karnataka State; and Mr. B.L. Gururaja, is Research Scholar and Faculty, Davan Institute of Advanced Management Studies, Davangere-577002, Karnataka. mobile:9448588789/9591848614; gururajbl.111@rediffmail.com email:govindappagt@yahoo.com/ G.T. Govindappa * B.L. Gururaja