Entrepreneurship is defined as the process where an individual discovers, evaluates and exploit opportunities independently. Most countries have embraced entrepreneurship development as ways of creating employment and economic growth and development. The objective of the study was to examine the challenges faced by commercial enterprises in Lira District Northern Uganda. Using both simple random sampling procedures, a sample of 274 participants were selected for the survey. The data were analyzed using SPSS statistical package. The study recommended that development partners operating in the district should consider supporting commercial enterprises (CEs) in accessing financial support, training upcoming managers in management skills and creating a favouarable environment which supports creativity and innovations.