The purpose of the study was to assess the contribution of small-scale industries in solving the unemployment problem in Entebbe Municipality. The study aimed at examining the ways through small enterprises are solving unemployment in Entebbe municipality, establish the relationship between formal education and employment accessibility in Entebbe municipality and the vital factors affecting the establishment or smooth running of micro enterprises in Entebbe municipality. The study used descriptive analytical research design involving both qualitative and quantitative research techniques to gather data. A sample size of 60 respondents was involved in the study. The study used close ended questions and interview guide to collect data. The study used Microsoft excel to analyze data. The study established the ways through small enterprises are solving unemployment. Small scale enterprises solve unemployment through self-employment, employing workers, support industrialization, through paying taxes, through value addition and through distribution. The findings established the relationship between formal education and employment accessibility. The chi-square test showed that there is a significant association between formal education and employment accessibility since the probability value, Sig. (0.003) is less than 0.01 (statistically significant at 1% level). The vital factors affecting the establishment or smooth running of micro enterprises, high taxes charged by the government, unable to maintain proper book keeping, high cost of accessing finance and inadequate capital . The findings concluded that small scale enterprises solve unemployment through selfemployment, employing workers and Support industrialization, through paying taxes, through value addition and through distribution. Formal education influences employment accessibility, enabling one acquire the necessary skills, enables one acquire managerial skills, educated person is employable, enables one start a business and it promotes creativity. High taxes charged by the government, unable to maintain proper book keeping, high cost of accessing finance and inadequate capital. The recommends that the government of Uganda should extend tax holidays to small scale enterprises to boost their growth and also attract more people to start up small scale businesses since they employ a great number of people. The government should also improve on the education system which is technical based and financial institutions should also minimize on the interest rates charged on small scale enterprises.

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