GSJ: Volume 9, Issue 9, September 2021, Online: ISSN 2320-9186 www.globalscientificjournal.com Critical Success Factors of Small and Medium Sized Enterprises in Addis Ababa, Ethiopia: Structural Model Firew Abera Lecturer and Head of Academic Unit Lunar International College Addis Ababa, Ethiopia +251911162024 freefire4396@yahoo.com ORCID: https://orcid.org/0000-0002-2963-730X Abstract The purpose of this study is to identify the critical success factors (CSFs) of small and medium-sized enterprises (SMEs) in Addis Ababa, Ethiopia. A questionnaire was developed using 54 factors identified from the previous researches. From 430 respondents, a total of 410 questionnaires were returned. By conducting exploratory factors analysis, the indicators were categorized into six factors, namely: Individual factors, management factors, business characteristics, business support, capital, and firm factors. Using IBM SPSS and AMOS, 17 the most affecting factors were identified and the results indicated that firm factors were the most critical factors that significantly affects the success of SMEs in Addis Ababa, Ethiopia, followed by individual factors and business characteristics. Management factors were the least critical factor that significantly affect the success of SMEs in Addis Ababa, Ethiopia. Keywords: Business Success, Critical Success Factors, SMEs. 1. Introduction Small and Medium-Enterprises (SMEs) are viewed as one of the mechanisms of economic growth in developing countries. Small and medium-sized enterprises in Ethiopia are relatively large in their presence. These projects are given for the low-income, poor and women groups. These are the reasons for governments and other stakeholders in development to be interested in micro and small enterprises. In developing countries, GSJ: Volume 9, Issue 9, September 2021 ISSN 2320-9186 1430 GSJ© 2021 www.globalscientificjournal.com