Small Enterprises play a major role in the resurgence of an economy. They are not only instrument of change but vehicles of growth and diversification. The role of small Enterprises was adequately realized long back. These industries are particularly suited for the better utilization of local resources and for the achievement of local self sufficiency in respect of certain types of essential consumer goods. The most pressing need in Ethiopia is rapid industrialization to establish small entrepreneurship for achieving the basic objectives of their economic and social progress. The development of small Enterprises will contribute to expansion of existing industrial base and growth of new industrial base. In the last two decades some positive institutional approaches were adopted by most of countries like Ethiopia with a view to stimulate process of industrial growth. Rapid industrialization is seen with the promotion and development of Small Entrepreneurship under Industrial Zones., The Concept of Eco- Industrial Zone Program as a powerful tool for rapid industrialization through decentralization of small entrepreneurship to rural and backward areas in Ethiopia.