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The paper aims to analyze firm-specific deterrents of innovation in Bahirdar city MSEs in Ethiopia. In order to attain the objective of the study, both descriptive and explanatory research method is used. In this paper, the data were drawn from 310 MSEs firms which were selected by using a simple random sampling technique. The data were analyzed using descriptive and inferential statistics which include mean, standard deviation, and binary logistic regression model. From the model summary, independent variables that were incorporated under the current study, contributed 69.6% of the deterrents of innovation in MSEs as represented by the Nagelkerke R-square. This means that those variables explain about 69.6% of the deterrents of innovation of MSEs, whereas other factors not covered in this study contributed 30.4% to the deterrents of innovation. The results have revealed that research and development are the most critical deterrent factor affecting technological innovation of MSEs at a 1% level of significance. Besides, cost of innovation and firm size factors are the next important deterrent factors affecting technological innovation of the enterprises, followed by human resource factors. Contrarily, variables such as organizational culture and perceived risk factors have not been statistically significant and less likely to affect innovation of MSEs in the current study. The government and other stakeholders need to work hard to encourage innovation among MSEs by providing support, including an increased supply of credit, training, technology support, and provision of micro and small enterprise information services. [ABSTRACT FROM AUTHOR]

Ethiopia is urbanizing rapidly and migration is the major factor in the urbanization process. Migration is selective and rural youth are more likely to migrate to cities than others. However, the capacity of cities to accommodate migrants by providing formal employment is limited. Consequently, migrants remain without access to employment opportunities. The majority are pushed into self-employment in the informal sector. Despite such challenges, harnessing the benefits of the youth bulge and promoting inclusive development through entrepreneurship programs has become a priority area since 1990s. Although progresses have been made, entrepreneurship programs are unable to reach the unemployed youth and those engaged in informal sector. The objective of this paper is to explore barriers that hinder the youth to join entrepreneurship programs. The study followed qualitative approach. Data were collected through key informant interviews and focus group discussions from four cities-Addis Ababa, Adama, Bahir Dar and Hawassa. The findings show that politicization of entrepreneurship; lack of understanding the needs of the youth, weak institutional systems, low levels of service capacity and inefficiency and lack of entrepreneurship education and youth negligence hinder the success of entrepreneurship programs thereby attaining inclusive development. Entrepreneurship programs thus need to follow flexible and participatory approach. Programs need to be selective in the type of entrepreneurial initiatives and supports that can address the needs and priorities of the youth. Providing youth with entrepreneurial education has a positive effect on their decision to be engaged in entrepreneurial activities. The government needs to minimize its political intervention in entrepreneurship programs. [ABSTRACT FROM AUTHOR]