Abstract: Bangladesh is one of the poverty ridden least developed countries in South Asia where half of the population are women, whose mainstream into the process of economic development is essential through self-employment activities like entrepreneurship. The study is conducted on the urban women entrepreneurs in small and medium scale enterprises in some major urban areas highlighting their socio-economic and organizational status, potentials in these business and problems in their business to suggest a policy guideline in order to encourage their successful survival in entrepreneurship. In identifying their socio-economic status their age, educational level, marital status, previous occupation etc. are studied. For assessing organizational status size of investment, ownership pattern, sources of investment, experience, training, earnings, efficiency, workers employed etc. are taken into consideration. Some motivational factors are also identified such as availability of raw materials, demand for their products, cheap labor force etc. Their status and importance have increased into their family and society and they are now inspired to do the business. However, some problems such as inadequate funds, marketing inefficiency, scarce of security in society, absence of sufficient training and skilled manpower etc. hamper their progress. If necessary steps are taken according to the policy guideline, their participation into this sector will increase and this will enhance the socio-economic development of the country.