There is a clear necessity to enlarge the entrepreneurial community in Ethiopia and support the development of competitive and innovative ICT and ICT related SMEs and start-ups. The lack of market driven innovation, low competitiveness of products or services and company’s poor productivity thus serve as significant hinders for bottom-up innovation in the country. Access to finance is also another challenge for innovation is reiterated by all stakeholders as a major impediment for the growth of innovative SMEs and start-ups, and for their capacity to adapt innovative technologies. The challenges in this respect is not necessarily the availability of funds, but rather the ability of SMEs and start-ups to access financing that would enable innovation. Innovation for Development program in a collaboration of Ministry of Innovation and Technology, Job Creation Commission, United Nations Development Program and Korean International Cooperation Agency will utilize a variety of approaches and mechanisms to strengthen the capacity and competitiveness of ICT and ICT related SMEs and start-ups to innovate and bring innovative solutions.