Entrepreneurship ecosystems and innovation hubs are critical for fostering economic growth in developing countries, particularly in rural and semi-arid regions like Ethiopia's Sahel and Savanna areas. The research employs qualitative methods including participant observation, semi-structured interviews, and focus group discussions with key stakeholders in Ethiopia’s Sahel and Savanna regions. A significant finding is the emergence of informal innovation hubs that support local entrepreneurs by providing access to resources such as training, funding, and market connections. The proportion of these hubs has increased from 15% in to over 30% in . The study underscores the importance of community-led initiatives for sustainable economic development in Ethiopia’s Sahel and Savanna regions. Government support should be directed towards strengthening these informal hubs, encouraging knowledge sharing among entrepreneurs, and fostering collaboration between local communities and external investors. Entrepreneurship Ecosystems, Innovation Hubs, Rural Development, Ethnography, Ethiopia