In Ghana, cities such as Accra, Kumasi, Takoradi and other business towns are densely populated as a result of internal
migration. The growth of Small and Medium Enterprises (SMEs) in Bolgatanga can be considered as a significant variable for poverty
reduction and rapid industrialization. The principal aim of this paper is to focus on the forces that motivate young persons to start SMEs
in the Municipality.It is considered as an alternative to southward migration that would lead to economic prosperity. A structured
questionnaire, containing 25 variables was used to collect data by survey from the target population and the sample size is 320. The data
were analyzed through simple descriptive statistics. The study revealed that entrepreneurs were mostly encouraged to start SMEs for
motivational or pull factors such as gaining self-independence, providing financial support to family, better health services, the need to
send their wards to schools, improving quality of life, etc. Some of the factors found to be influential were inspiration from friends and
relatives, availability of markets, profits potential and many others. It was disclosed however, that in developing regions, business
generally in the Municipality suffer from lack of financial support, income, and gender based discrimination, lack of adequate training
facility. Government and private initiative is imperative in this regard to address the difficulties.