Back Ground: The current over all development objective of Ethiopia is achieving end poverty through
accelerated and sustained economic growth by giving greater emphasis for the improvement of employment opportunities for
youth and women. Objective: The main objective of this study was to determine the targeting youth group in microenterprises
and assess the status, challenges and its prospects in the case of Addis Ababa, Ethiopia. Method: A cross sectional survey of
120 micro enterprises which operated by youth groups in Addis Ababa, Ethiopia. The major micro and small enterprise activity
identification was based on the available information from MSE packages and selected randomly. The sampling method was
involved in ten sub-cities of Addis Ababa. Data analysis was made by using descriptive statistics. Results: From the different
supports provided by youth targeting microenterprises, psychological and finical supports are the major supports to female
operators. Moreover, majority of microenterprises were undertaking quality control and quality standards and most of these
microenterprises, were undertaking controls over production; however, absence of testing facilities, attitude of operators, lack
of technical skills, and high cost were the major reasons for not undertaking quality control and quality standards. Conclusion:
Hence, majority of such enterprises source of their initial capital were obtained from microfinance institutions, they are playing
a great role in terms of poverty reduction, employment and growth of micro enterprises especially for youth targeting micro
enterprises and it has to be strengthen.